Usual Protocol Primer
Last updated
Last updated
Usual is a decentralized stablecoin protocol that issues USD0, a dollar-pegged, real world assets (such as US T-Bills) backed stablecoin designed for use in DeFi. You can stake USD0 into USD0++ to earn yield in $USUAL, which is the governance token that aligns user incentives with the protocol's growth, offering ownership and revenue sharing. It creates a more user-empowered and transparent alternative to USDC/USDT, while integrating seamlessly into DeFi ecosystems.
Usual is a new kind of stablecoin protocol designed to give users more control and rewards compared to traditional stablecoins like USDC or USDT. It creates a better system where you, as a user, not only benefit from using the stablecoin but also get ownership in the protocol itself.
In the current crypto landscape, stablecoin issuers (like Tether and Circle) make a lot of money, but users don’t benefit from this wealth. Usual flips this model by redistributing profits and ownership to users. This makes it a fairer system, where users who hold or use USD0 and $USUAL actually benefit from the protocol’s success.
This is Usual’s stablecoin. It's pegged to the US dollar and backed by real world assets (RWA) like US Treasury Bills (T-Bills). Unlike other stablecoins that might have hidden risks (like depending on banks), USD0 is fully backed by super-safe assets (T-Bills), making it more secure. It’s also designed to be permissionless and easily integrated into DeFi (Decentralized Finance) ecosystems.
Key features of USD0:
Fully backed by RWA T-Bills, making it stable and secure
Completely transparent—anyone can verify the reserves backing USD0
Works seamlessly in DeFi, allowing for easy trading, lending, or using it as collateral
USD0++ is a "staked" version of USD0. If you want to earn more from your USD0, you can stake it in USD0++ for up to four years. While locked, USD0++ still remains liquid and tradable, and it earns extra rewards in the form of yield. This yield can be paid out in Usual’s governance token, $USUAL ensuring you get a return on your staked assets.
Key features of USD0++:
Staked for 4 years but still tradable in DeFi
Earns daily yield, paid in $USUAL tokens
Offers a minimum guaranteed yield, making it attractive for users seeking stable returns
$USUAL is Usual’s governance token, but it’s much more than just a token to vote with. It represents ownership of the protocol, meaning users benefit from the protocol’s growth and revenue. The more USD0 is used, the more valuable $USUAL becomes. It also gives users a say in how the protocol is run, including decisions on collateral types and rewards distribution.
Key features of $USUAL:
Represents ownership in the protocol’s revenue
The token supply grows slowly over time, ensuring it becomes more valuable as the protocol grows
$USUAL holders can stake their tokens to earn more $USUAL and participate in governance
$USUAL can also be used to unlock staked USD0++ before the 4-year period ends
The Usual protocol lets users swap USDC for USD0, which can then be staked to earn more USD0 (called USD0++). By doing this, users can eventually earn $USUAL, the governance token of the protocol. Behind the scenes, a system gathers liquidity from USDC deposits and invests it in on-chain Treasury bills. All the profits go to the protocol’s treasury, which is controlled by $USUAL holders. $USUAL is distributed in a disinflationary manner, with 90% of protocol revenue supporting operations, stakers, and liquidity providers, while 10% goes to $USUAL holders.
For a deep-dive into Usual and its value proposition please refer to this in-depth view: Usual, Explained
