1. USD0: Liquidity deposit token
USD0 is $USUAL
One of the core assets of the Usual protocol, similar to USDT in traditional finance. Users holding USD0 can redeem the protocol's underlying asset RWA (real world asset) at any time.
2. USD0++: Locked tokens, additional income rights
Locking USD0 for 4 years will earn you USD0++. The advantages and disadvantages are as follows:
advantage:
Higher Usual Subsidy: Holding USD0++ will get you 45% extra subsidy.
RWA income rights: can enjoy the income distribution of the underlying assets of the protocol.
shortcoming:
Poor liquidity: If you exit early, you need to sell it on the secondary market, which may cause wear and tear, usually in the range of 5%, which is equivalent to about 1 month of mining income.
If you are bullish on the project in the long term, holding USD0++ is a better option, although the short-term exit cost is higher.
Other suggestions: If you are more conservative about USD0++ risk, you can choose USD0/USDC LP, which has an annualized yield of 44%.
YT USD++: Short-term high-yield asset
What is YT USD++?
YT USD++ holders enjoy the full benefit of USD0++, but its value returns to zero after expiration (May 27, 2024).
Return calculation and risk:
Current annualized rate of return: 644%.
Payback period: about 59 days (revenue maintained at current level).
Remaining income at maturity: 115 days of net income.
Potential risks:
Uncertainty of earnings: Whether YT earnings can be sustained is the biggest variable.
Price Fluctuation Risk: A decline in YT prices and Usual prices may result in a decrease in returns.
You need to carefully assess the market conditions and risk tolerance before participating.
Usual’s early layout and pledge risks
Community Engagement Review:
Research report release: On July 24, 2023, the Unidrops community first released the Usual airdrop research report.
Early situation: At that time, TVL (total locked value) was only 100 million US dollars, and the Chinese community paid little attention to it.
Risks associated with staking:
1. Risk of depletion wear and tear
A 10% handling fee is required for unstaking. Based on the current 1.49% daily yield, it will take at least 7 days of staking to cover the cost.
2. Risk of Staking Revenue Dilution
The current scale of USUALx (staking token) is 26 million, and it is expected that the scale of subsequent staking will further expand, which may dilute the yield of the staking pool.
The staking APY shown on the official website is not updated in real time, and the update frequency is not clear at the moment.
3. Risk of currency price decline
The current high yield attraction may be the main source of buying for USUAL. Once the price of the currency goes down, the possibility of a significant reduction in yield or even a reduction in principal increases.
Final summary:
For USUAL participants, the attraction of high interest rates is certainly important, but the staking costs, return dilution and market risks must be fully considered.
Although the price has risen five or six times since the bottom, I personally think it is okay to buy in batches for medium and long-term investment. I am very optimistic about it.
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