Binance Labs just dropped $10 million into Usual, a decentralized protocol shaking up the stablecoin landscape. What makes Usual stand out? Well, it’s not just another $usdc or $usdt clone. They’re actually incorporating Real-World Assets (RWAs)—like US Treasury Bills—into their ecosystem. This could be a game changer for those of us looking for a stable digital currency in these turbulent times.
What Makes Usual Different?
Usual has already made waves, quickly racking up over $1.4 billion in total value locked (TVL) and landing itself in the top five stablecoins globally. Their Series A round was no small feat, attracting heavyweights like Kraken Ventures and other leading industry players. The $10 million investment is just a cherry on top.
While many stablecoins rely on fiat reserves, Usual is flipping the script by including RWAs in the mix. By tokenizing things like real estate and commodities, Usual is bringing physical assets into the decentralized finance space. Enter USD0, a permissionless and fully backed stablecoin that’s also on-chain verifiable. Sounds good, right?
The beauty of Usual lies in its focus on RWAs. They’ve cleverly aggregated assets from reputable institutions like BlackRock, Ondo, and Mountain Protocol, which boosts liquidity for traditionally illiquid assets. This could mean better access for a wider range of investors and more liquidity in the DeFi ecosystem.
But let's be real for a second. While RWAs are gaining traction, the integration with DeFi isn’t smooth sailing. Currently, fewer than 5,000 holders have RWA assets on the mainnet. That’s a tiny fraction of potential investors who could benefit from stablecoin yields.
A Decentralized Governance Model
Usual isn’t just playing by the same old rules. Unlike traditional stablecoins, they’re introducing a fully decentralized governance model. That means users actually get a say in the protocol's direction, something we’ve never really seen in the world of stablecoin use cases.
$USUAL token holders aren’t just there for the ride. They partake in governance decisions and share in the profits generated within the protocol. The yield pooled by Usual becomes part of the protocol’s treasury, and in return, users receive governance tokens. This is a shift away from the risks associated with commercial bank reserves and fractional reserve banking.
The Market Reaction
In just over a month since launching, the market cap of $USUAL has soared to over $620 million. Demand appears to be strong, with the price of $USUAL climbing from $1.05 to $1.20 after the investment was disclosed.
Most $USUAL tokens (90%) are given to the community, while just 10% goes to insiders and investors. This ensures that the protocol remains community-driven, with incentives aligned toward long-term value creation.
The protocol issues $USUAL tokens based on how much USD0++ is minted, meaning that token issuance is closely linked to protocol growth. The emission rate is deflationary, which could make the token scarcer and more valuable over time.
Usual's future looks to expand even further. They’re working on increasing the adoption of their products and are planning to launch the $USUAL governance token soon. A pre-launch campaign called the Usual Pills campaign will allow users to earn points (Pills) to compete for a share of the airdrop.
The Bottom Line
Usual is redefining what it means to be a stablecoin. With its focus on integrating RWAs and a decentralized governance model, it’s aiming to set a new standard. The $10 million investment from Binance Labs is a nod to its potential as a stable, transparent, and secure alternative to traditional options. Time will tell if this new approach will truly benefit us investors looking for a safe harbor amidst the crypto storm.
