What Sets Usual Apart in the Stablecoin Landscape?
Q: What is the significance of Usual's recent funding from Binance Labs?
A: Usual has made headlines with a $10 million investment from Binance Labs as part of its Series A round. This funding, which also included backing from Kraken Ventures and other industry players, positions Usual as a leading decentralized stablecoin protocol, boasting over $1.4 billion in total value locked (TVL) and ranking among the top five stablecoins globally.
Q: How does Usual's stablecoin differ from traditional fiat-backed options?
A: Usual's stablecoin is built on the integration of Real-World Assets (RWAs), specifically US Treasury Bills. Unlike many fiat-backed stablecoins that depend on traditional banks to hold reserves, Usual allows tokenization of these physical assets, bringing them into the decentralized finance (DeFi) ecosystem. This results in a stablecoin termed USD0, which is on-chain verifiable and fully backed by short-term bonds.
What is the Role of RWAs in Usual's Ecosystem?
Q: How crucial are RWAs to Usual's operation?
A: The focus on RWAs has been instrumental for Usual. By aggregating assets from established institutions like BlackRock, Ondo, and Mountain Protocol, Usual enhances liquidity for traditionally illiquid assets. This opens doors to a wider range of investors and adds liquidity to the DeFi ecosystem.
Q: Are there challenges in making RWAs accessible to DeFi?
A: The challenge is evident. The introduction of on-chain US Treasury Bills has not resulted in a significant number of holders, with fewer than 5,000 current holders on the mainnet. Usual's aim is to bridge traditional finance and DeFi, redistributing value more equitably among users.
How Does Usual's Governance Model Function?
Q: What is unique about Usual's governance structure?
A: Usual is built on a fully decentralized governance model, offering community members the chance to participate in decision-making and profit redistribution. This contrasts sharply with traditional stablecoins that often rely on centralized control and fractional reserves.
Q: What benefits does decentralized governance provide?
A: With decentralized governance, Usual offers transparency and security. $USUAL token holders can influence governance decisions and share in the profits generated by the protocol. This bypasses the risks associated with commercial bank reserves and fractional reserve banking.
What is the Purpose of the $USUAL Token?
Q: How does the $USUAL token fit into the Usual ecosystem?
A: The $USUAL token has quickly gained traction, with a market cap exceeding $620 million after the investment announcement. Its price rose by 15% in response, from $1.05 to $1.20. The majority of $USUAL tokens (90%) are allocated to the community, ensuring alignment with growth and long-term value creation.
Q: What is the model for issuing $USUAL tokens?
A: The issuance of $USUAL tokens is closely linked to the minting of USD0++. The emission is designed to be deflationary, decreasing relative to the total value locked (TVL) as new deposits occur, enhancing the token's value over time.
What Are Usual's Future Prospects and Challenges?
Q: What initiatives are in store for Usual?
A: Usual's roadmap includes expanding its ecosystem and increasing product adoption. A major upcoming event is the launch of the $USUAL governance token, preceded by the Usual Pills campaign. Users can earn Pills through protocol activities, determining their share of the $USUAL tokens during the airdrop.
Q: What hurdles might Usual encounter ahead?
A: Usual faces challenges, particularly in integrating RWAs into DeFi and navigating regulatory landscapes. The potential implications for traditional banking systems highlight the need for solid regulatory frameworks, as do the risks and rewards of decentralized governance.
