$USUAL The main difference is that USUAL has collateral from the physical world, making it more similar to Tether Limited, the issuer of USDT, with the difference that USUAL will distribute benefits among its governance token holders. Terra Luna, on the other hand, was a system of algorithmic backing where the currency USTerra was backed by LUNA (it's like if USD0 were backed by USUAL tokens).

Without getting too technical, algorithmic stablecoins use a central bank or a group of tokens controlled by smart contracts (small pieces of code embedded in the blockchain) to maintain the price. So, for example, if the price of USTerra rose above $1, the algorithm would use LUNA to generate more UST and reduce the price. If the price dropped, it would swap UST for LUNA to drive it back up. In simple terms, a kind of "arbitrage". The failure of Terra Luna was backing a stablecoin with a token that had no intrinsic value. However, in the case of Terra Luna, there were also other cryptocurrencies that were supposed to serve as backing, which unfortunately, in a bear market, when their value fell, were not sufficient to maintain the 1 to 1 of UST/USD.

USUAL has real-world collateral (RWA) that adds the yield generated by the collateral backing its stablecoin to the protocol's treasury. Instead of redistributing this yield directly as cash flow, the value is retained within the protocol, enhancing the intrinsic value of the governance token ($USUAL). This token grants users both ownership and decision-making power over the protocol, its treasury, and future revenues, aligning incentives and fostering sustainable growth.