Today we will continue to look at Binance's 61st launchpool - the stablecoin Usual, and analyze it comprehensively to see what innovations it has. There are still about 10 hours left, and it will be released on November 19.
The 61st Launchpool - Usual (USUAL), a decentralized fiat stablecoin issuer.
Token Name: Usual (USUAL)
Total Token Supply: 4,000,000,000 USUAL
Initial Circulation: 494,600,000 USUAL (12.37% of total token supply)
Total Launchpool: 300,000,000 USUAL (7.5% of the maximum token supply)
A total of 4 days of mining, the BNB pool can mine 85%, and FDUD can mine 15%.
Introduction
USUAL is a secure and decentralized fiat stablecoin issuer that redistributes ownership and governance through the $USUAL token.
Usual is a multi-chain infrastructure that aggregates a growing collection of tokenized real-world assets (RWA) from entities such as BlackRock, Ondo, Mountain Protocol, M0, or Hashnote, transforming them into permissionless, on-chain verifiable, composable stablecoins (USD0).
Typically built around redistributing power and ownership to users and third parties, similar to the scenario where Tether's TVL providers own the company and its related income.
USD0 tokens can be minted in two ways at Usual's counter:
Direct minting: By depositing eligible RWA into the protocol, receiving an equivalent USD0 at a 1:1 ratio.
Indirect minting: By depositing USDC into the protocol, receiving USD0 at a 1:1 ratio. In this method, third-party collateral providers (CP) provide the necessary RWA collateral, allowing users to obtain USD0 without directly holding RWA. At the protocol's launch, all orders below 100,000 USD0 will be redirected to secondary market liquidity.
USD0 tokens can be redeemed in two ways:
Withdrawals of underlying assets: Users can directly withdraw the real-world assets (RWA) corresponding to their USD0 tokens at the Usual counter.
Secondary market trading: Users can sell USD0 on the secondary market in exchange for USDC/T. Since USD0 can be fully redeemed at the Usual counter, a 1:1 peg is expected to be maintained through arbitrage, similar to other fiat-backed stablecoins.
Facilitating access to the primary market
USD0 is a stablecoin that is 100% backed by real-world assets (RWA). Users wishing to mint USD0 must directly deposit RWA into the protocol.
However, to enable DeFi users to mint USD0 at a 1:1 ratio on the primary market and ensure access with no slippage, the Usual Protocol is equipped with a primary stability module. This module allows collateral providers (CP) to provide RWA, ensuring a smooth and efficient minting process.
Providing collateral involves the following steps:
Depositing RWA: Collateral providers deposit RWA into the minting engine for future minting.
Minting trigger: When users deposit USDC to mint USD0, the transaction triggers the use of the deposited RWA.
Settlement and rewards: After settlement, collateral providers will receive USDC (1:1) equivalent to their provided RWA, along with rewards in the form of USUAL tokens.
Collateral providers can choose to repurchase USYC and redeposit it as collateral, thereby maintaining the cycle and contributing to the protocol's liquidity and stability.
This mechanism ensures all participants can effectively access USD0, thereby fostering a fair and balanced ecosystem within the Usual Protocol.
USD0 earnings
To make their USD0 effective, users can lock USD0 or purchase USD0++ on the secondary market. When users lock their USD0 for 4 years, USD0 liquid bonds (USD0++) will be issued. In return, they will receive composable and transferable USD0++, which provide rewards in the form of Pills during the Pills event and subsequently yield through Basic Interest Guarantee (BIG) in USUAL tokens or USD0 after the pre-release phase.
USD0 holders can lock their USD0 at any time to activate it through USD0 liquid bonds (USD0++):
Locking USD0: Users lock their USD0 to exchange it for USD0++ at the usual counter.
1:1 issuance: USD0++ is issued at a 1:1 ratio, locking USD0.
Lock-up period: Locked assets remain unchanged during the USD0++ maturity period.
Every time new USD0++ is minted, USUAL is issued corresponding to the protocol's total locked value (TVL) and its income.
The issuance rate per dollar decreases over time and accelerates with the increase in TVL.
After the pre-release, fewer USUAL will be distributed, and over time, the number of tokens corresponding to each dollar of TVL will decrease.
USUAL will be distributed among USD0++ holders, LPs, staking, and other products, with 90% allocated to the community.
This principle extends to other assets and their respective liquid bond tokens (LBT) and LP incentives, as they are generally designed as a multi-asset structure.
Token Economics
The total supply of USUAL is 4,000,000,000, with a circulating supply after listing of 494,600,000 (approximately 12.37% of total token supply). USUAL is the native utility and governance token of Usual, linked to the TVL of USD0, entering into the product's value system. By staking USUAL, holders activate governance rights and gain 10% of newly issued USUAL, incentivizing long-term behavior.
This is different from the usual DAI and MAKER. Usual currently feels a bit similar to vecure's method. This type of method poses no issues during a price increase, but once the price falls significantly, there should be no recovery mechanism. That is, if TVL increases, I will issue usual, but if TVL decreases, it does not indicate that usual will be retracted. So if TVL decreases, even if new people mint USD0, there is no reward? Will anyone continue to mint this? This is a question!
Looking at the token distribution, launchpool is 7.5%, initial airdrop is 8.5%, investors and advisors 5.68%, team 4.32%, DAO and ecosystem 7.5%, liquidity 2%, community incentives 64.5%, with a total release cycle of 4 years.
In terms of TVL, it can be seen that it is continuously growing, with almost no retracement, as its initial intensity was high, and the larger the TVL amount, the smaller its incentives become, so the initial volume increases relatively quickly.
Finally, we estimate its reasonable valuation. Based on previous launchpool earnings, which is 1%-2% returns, the current BNB pool has 18 million BNB, worth 11 billion. Therefore, the entire pool is worth 110-220 million USD, with USUAL quantity at 255,000,000, leading to a USUAL price between 0.4-0.8 USD. If this is the price, then the overall market cap reaches 2-4 billion USD. However, Maker, the big brother in this field, has a market cap of only 1.4 billion USD, and Maker's TVL is 5 billion USD, while Usual currently has only 300 million. Although it might increase to 3 billion later, it currently is limited to this amount, and having a market cap higher than Maker is evidently unreasonable. Therefore, I personally believe that a reasonable market cap is below 1 billion USD, at most 1 billion USD, translating to a token price of about 0.2 USD.
