$USUAL With declining returns and large investors selling off, where will this token go in the future?

Usual is an RWA+ stablecoin project

There are three tokens in the project: USD0, USD0++ and project token USUAL

The basic stablecoin USD0 can be minted using a variety of crypto assets

Pledge certificate USD0++

USD0++ can be generated by staking USD0, with an exchange rate of 1:1, and can be traded on the secondary market with an annualized rate of return (APY) of 57%

Project token USUAL

USUAL is produced by holding USD0++, and USUAL can also be re-pledged to obtain USD0++ or governance token USUALx, of which holders of USUALx will receive 10%

Pledged USUAL has a four-year lock-up period, and if you want to release the pledge in advance, you must burn a certain proportion of tokens before you can withdraw them

The two annualized rates of return (APY) are 58% and 33%

The operating mechanism of USUAL economic flywheel

Since the staking and incentive currencies are both USUAL, the staking yield = USUAL price x USUAL additional issuance, and the additional issuance of USUAL depends on the staking rate

Therefore, when the USUAL price rises, the staking yield will increase rapidly due to the compound effect of price and additional issuance

This increase in yield will attract more users to buy USUAL and participate in staking, further pushing up the staking yield

In this way, the USUAL coin price and staking yield will show an accelerating upward trend.

The defect of this model is that once the USUAL price falls, the staking yield will also be greatly reduced due to the compound effect of the price and additional issuance, which will cause panic among users and lead to a large-scale selling of USUAL, forming a "falling faster and faster" death spiral.

Therefore, the project with this flywheel effect

Not only does its coin price rise rapidly, but it also falls sharply.

Since the downward trend is often very strong, it is difficult to rescue the market. The price of the currency often falls sharply after a peak.

Recently, $USUAL has implicitly announced cooperation with Bearchain and Corn. USD0++ should soon be able to participate in Bearchain's lock-up plan.

But I think the biggest problem at present is whether the project party has mastered the rules of the game and whether the lock-up period of $usual will be increased.

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