$USUAL There is a new mechanism introduced by the project team yesterday about USD0++. It has caused fluctuations in the price of USD0++ and decrease of TVL from 1.82B to 1.6B due to unstaking. The following is quoted from Foresight News.

"In the volatile environment of the crypto market, fluctuations in market liquidity (for example, RWA's underlying assets - US Treasury bonds have been discounted in recent fluctuations) and the implementation of the overlay mechanism have poured cold water on investors' expectations, USD0/ The USD0++ Curve pool was quickly sold wildly by investors, with the pool offset reaching 91.27%/8.73%. The USD0++/USDO lending pool APY on Morpho also soared to 78.82%. Before the announcement, USD0++ had maintained a premium pattern against USDO for a long time. This may be due to the fact that USD0++ provided a 1:1 early exemption option during Binance’s pre-market trading period, maximizing airdrop benefits for users before the protocol was launched. After the mechanism was clarified, investors began to flow back to BTC which has more liquidity."

This incident has indicated the uncertainty of the investor confidence in the project. While some Usual tokens will likely to be burned next week due to TVL decrease, the impact on the price shall be minimal as the loss of investor confidence may priced in more than the amount of tokens burned.