Usual

Introduction to Usual

Usual challenges the stablecoin status quo where issuers like Tether and Circle capture billions in yield while users receive nothing. The protocol creates USD0, a stablecoin backed by real-world assets (primarily US Treasury bills), and distributes the yield generated to USUAL token holders rather than keeping it as profit. This represents a novel approach to DeFi stablecoin design.

The premise is simple: stablecoin backing generates significant revenue, and that revenue belongs to the community that provides the capital. By tokenizing ownership of this yield stream, Usual attempts to create a more equitable stablecoin model.

How Usual Works

USD0 provides the core stablecoin product. Backing comes from RWAs, primarily Treasury bills. Full collateralization ensures every USD0 is backed. Yield-generating backing creates revenue. Transparent reserves enable verification.

USD0++ provides an enhanced liquid staking product. Users stake USD0 to participate. The USD0++ token is received in return. USUAL rewards flow to stakers. Liquidity is maintained throughout.

Revenue distribution defines the value flow. RWA backing earns yield from Treasury interest. Yield accrues to the protocol. USUAL holders receive the value. Community ownership replaces corporate capture.

Technical Specifications

Usual operates on Ethereum with USD0 as the stablecoin. Backing consists of US Treasury Bills. Collateralization exceeds 100%. Distribution flows through the USUAL token.

The USUAL Token

USUAL serves multiple purposes within the protocol. Yield rights provide protocol revenue share. Governance enables decision making. Staking earns enhanced rewards. Ecosystem utility continues expanding.

Tokenomics create the value mechanism. Protocol revenue backs token value. Yield accrual increases holdings over time. Staking rewards compensate participation. Supply dynamics affect token economics.

Revenue sharing defines the distribution model. Treasury bill yield generates income. Distribution flows to stakers. USUAL serves as the claim mechanism. Proportional holdings determine shares.

The Stablecoin Thesis

Current problems plague the industry. Tether earns billions while users receive nothing. USDC follows the same extractive model. Capital provided by users creates the value. Yield extracted by issuers captures all benefit.

Usual’s solution provides redistribution. Users provide the capital backing stablecoins. Users should receive the yield generated. Tokens represent ownership of yield streams. Aligned incentives benefit all participants.

Economic significance explains why this matters. Billions in annual yield flow through stablecoins. Community capture redirects this value. More equitable models empower users. User participation replaces corporate extraction.

USD0 Details

Backing assets define collateral composition. US Treasury Bills provide low-risk returns. Short-duration instruments maintain liquidity. High-quality assets ensure safety. Transparent reserves enable verification.

The minting process creates new USD0. Depositing approved collateral initiates minting. USD0 is received at 1:1 ratio. Backing is held in custody. Auditable reserves provide transparency.

Redemption provides the exit mechanism. Redeeming USD0 returns backing. Value exchanges at 1:1 ratio. Transparent process ensures fairness. Liquidity remains available.

USD0++ Staking

Enhanced yields provide staking benefits. Depositing USD0 enters the staking program. USD0++ token is received. USUAL rewards flow to stakers. Liquid token representation maintains flexibility.

Lock periods offer commitment options. Various durations are available. Longer locks earn higher rewards. Flexible options balance access and returns. User choice determines commitment level.

Rewards flow from multiple income streams. Base yield comes from backing assets. USUAL token rewards add incentive. Potential bonuses enhance returns. Compound opportunities maximize earnings.

Competition and Positioning

Among stablecoins, different approaches serve different goals. USD0 has Treasury bill backing with yield distributed to users via USUAL. USDC has cash and Treasury backing with no yield to users. USDT has mixed backing with no yield to users. DAI has mixed backing with partial yield through DSR.

Usual differentiation provides key advantages. Yield redistribution returns value to users. Transparent backing enables verification. Community ownership replaces corporate control. Token value alignment connects holders to protocol success.

Risk Considerations

RWA custody creates counterparty risks. Custodian reliance requires trust. Treasury bill management involves operational complexity. Operational risks exist in any system. Regulatory compliance must be maintained.

Token mechanics present economic risks. USUAL price volatility affects returns. Yield sustainability depends on market conditions. Market conditions change over time. Competition affects market share.

Regulatory uncertainty adds legal considerations. Stablecoin regulations continue evolving. Securities questions may arise. Jurisdictional issues vary by location. Compliance requirements demand attention.

Governance

DAO structure provides decentralized control. USUAL governance voting determines decisions. Protocol parameters are set by holders. Treasury management allocates resources. Strategic decisions shape direction.

Governance scope covers key decisions. Collateral policies determine backing. Fee structures set costs. Distribution rates determine yields. Ecosystem development guides growth.

Team and Backing

Founders bring unique leadership. Pierre Person served as a French Member of Parliament. Traditional finance experience informs decisions. Regulatory understanding guides compliance. Political connections provide access.

Investors provide funding support. Venture backing enables development. Strategic partners extend reach. DeFi investors bring ecosystem knowledge. Growth capital funds expansion.

Challenges and Criticism

Sustainability raises long-term questions. Treasury bill yields vary with interest rates. Market conditions change over time. Competition for TVL intensifies. Economic sustainability must be demonstrated.

Complexity creates user understanding challenges. Multiple tokens require learning. Staking mechanics add complexity. Yield sources need explanation. Value proposition must be communicated clearly.

Competition creates market dynamics challenges. Many stablecoins exist. Yield products are available elsewhere. Differentiation proves difficult. Network effects favor established players.

Recent Developments

Launch progress shows platform rollout. USD0 is live and operational. Exchange listings provide access. TVL growth demonstrates adoption. User adoption expands the community.

Ecosystem growth demonstrates expansion. DeFi integrations connect to protocols. Partnership announcements extend reach. Product development adds features. Community building strengthens engagement.

Future Roadmap

Development priorities focus on TVL growth for capital attraction, DeFi integrations for ecosystem, new product offerings, DAO governance maturation, and regulatory compliance clarity.

Conclusion

Usual represents a philosophical challenge to how stablecoins capture value. The argument that yield belongs to capital providers rather than issuers is logically compelling, and the mechanism to redistribute that yield through USUAL creates potential alignment.

Whether this model can compete with the network effects and trust that established stablecoins possess remains to be seen. The complexity of multiple tokens and staking mechanisms may limit adoption among users seeking simple stablecoin functionality.

For users interested in yield-bearing stablecoin exposure with protocol revenue sharing, Usual offers a differentiated approach, though understanding the token mechanics and risks is essential for informed participation.