I've figured out the idea behind the $USUAL token. Let's dive into some theory and numbers:
The Theory:
1. Every minted USD0++ token mints 12 USUAL tokens. The high APY offered by holding USD0++ or using it in DeFi (currently 43%) encourages people to mint USD0++ and farm $USUAL.
2. Every minted USUAL token flows into designated buckets, with 10% allocated to UsualX and 2.5% to USD0/USDC.
3. Over 12.37% of the $USUAL supply won't be circulating for the first week due to the 7-day verification period for USD0++ and liquidity rewards.
The Numbers:
- Initial circulating supply of $USUAL: 12.37% = 160M
- Real circulating on-chain supply on day one: 4.37% = 62M (due to the 7.5% on Binance being unavailable for withdrawal on day one)
The IDEA:
1. The USD0/USDC Curve pool currently has $26M deposited, generating a 36% yield with a 2.5% USUAL mints allocation.
2. Assuming half of the USUAL airdrop will be transferred to CEXes to sell, the real on-chain supply will be approximately $31M.
3. If all $USUAL tokens are staked into xUSUAL, the APY yield will be around 120% from day one, with 100% liquidity. This can be hedged on perps.
4. Additionally, the USUAL/USD0 pool has a 2% allocation, potentially offering up to 40% APY with a $20M TVL.
What Now?
There's no point in selling USUAL if you can stake it, unstake at any time (no lock), and hedge on perps to avoid losses. Instead, there's a point in buying USUAL to stake it, LP it for high APY, and hedge it. As a result, everyone will likely stake and spot buy to hedge on perps.