What is Usual and How is It Changing the Game?
Usual is a new player in the stablecoin market, and it’s gaining a lot of attention for its unique approach. It integrates Real-World Assets (RWAs) — like US Treasury Bills — into its ecosystem, which not only adds liquidity but also creates a bridge between traditional finance and decentralized finance (DeFi). Recently, it landed a $10 million investment from Binance Labs, Kraken Ventures, and other industry heavyweights.
How Does Usual Work with Real-World Assets?
Increased Liquidity and Efficiency
Usual's model allows RWAs like US Treasury Bills to be tokenized and traded in a digital format. This process turns illiquid assets into something that can be easily bought and sold and brings a wider range of investors into the fold. By aggregating assets from big names like BlackRock and Mountain Protocol, Usual injects more liquidity into the crypto market.
Merging Traditional Finance with DeFi
The combination of RWAs and stablecoins helps DeFi and traditional finance work together. This could pave the way for faster and more transparent methods for things like cross-border payments and asset transfers. Usual's stablecoin, USD0, is fully backed by short-term bonds and is both on-chain verifiable and permissionless, making it a stable alternative.
What Does Community-Driven Governance Mean for Usual?
Emphasizing Decentralization and Transparency
Usual has adopted a fully decentralized governance model. Users get to influence decisions, which is a big plus for transparency. Decisions, proposals, and voting outcomes are all stored on the blockchain, making the process open to all.
Fostering User Engagement and Trust
Community-driven governance means that decisions are made by the community, not a centralized management team. This aligns with Web3 values and ensures that the project grows in ways that meet the community's needs and desires. Users become more invested in the project, which can lead to increased loyalty.
Inclusivity in Decision-Making
Anyone holding tokens can propose changes to the protocol, making the decision-making process more inclusive. This democratization of governance ensures that the community shares in the project’s success, as governance token holders get a cut of the profits generated.
How is Usual's Token Model Different from Traditional Stablecoins?
A Deflationary Approach
The $USUAL token is designed to be deflationary; its total supply will decrease over time. This is accomplished by burning tokens and reducing the issuance rate as the Total Value Locked (TVL) of USD0++ increases. New tokens are minted only against guarantees of future revenue, protecting holders from dilution.
Contrasting with Other Stablecoin Yields
Unlike yield-bearing stablecoins that focus on generating income through staking or real-world asset backing, the $USUAL token's value is linked to the protocol's revenue and growth. This means its value increases as the protocol grows, but it doesn't offer traditional yields. Other stablecoins like stUSD from Angle Protocol or USDe from Ethena Finance provide annualized yields of 4-7%, which are paid to holders through staking or other methods.
Security and Risk Management
Usual Protocol places a strong emphasis on security, with extensive risk mitigation measures, including multiple smart contract audits. This may set it apart from other stablecoin platforms that do not prioritize security as highly.
What Are Usual's Future Plans and Their Potential Impact?
Growing the Ecosystem
Usual is looking to expand its ecosystem and increase the adoption of its products. One significant upcoming event is the launch of the $USUAL governance token, preceded by a campaign called Usual Pills. Users can earn Pills by participating in protocol activities, which will determine their share of $USUAL tokens during an airdrop.
Influence on the Stablecoin Market
Usual's unique blend of RWAs and community governance is raising the bar in the stablecoin market. By improving liquidity, efficiency, and transparency, Usual is making a push to connect traditional finance and DeFi, providing a more open and secure option for stablecoin users. The deflationary nature of the $USUAL token, along with its connection to protocol revenue and TVL growth, makes it appealing for long-term investors.
Summary
To wrap up, Usual is redefining what a stablecoin can be with its focus on RWAs and community-driven governance. By creating a more liquid, efficient, and transparent ecosystem, Usual is well-positioned to make a significant impact in both crypto and the financial world at large.
