The title of today's article reflects the perspective that I see many people mentioning on Binance Square and other forums. I see many people believe that USUAL is similar to LUNA. So is this true? I will provide some information below for everyone to refer to.

1. $LUNA

Speaking of LUNA at the present time, it is likely that no one is unaware of the "death spiral" it brings. Its impact not only affects investors but also spreads throughout the entire market.

To recap some information, Terra (LUNA) is a decentralized financial payment network that rebuilds the traditional payment system on blockchain.

With the dominant stablecoin UST based on the Dual Token mechanism for development. UST is an algorithmic stablecoin, and its price peg is only maintained by burning or minting LUNA tokens.

According to CEO Charles Cascarilla of Paxos regarding algorithmic stablecoins: ‘We call this cryptocurrency worth 1 USD because it is secured by another asset that we also create out of thin air.’

In fact, if you look up information about what an algorithmic stablecoin is, there will be quite a few pages explaining it. But personally, I still find it a mystery without a solution. That is why the legal battle is still ongoing without resolution.

2. $USUAL

Usual is a stablecoin project on the Ethereum network, allowing users to stake assets and receive the project's stablecoin - USD0. The purpose of Usual is to become a platform providing a safe, transparent stablecoin. USUAL is the issuer of a safe and decentralized Fiat Stablecoin, redistributing ownership and management through the $USUAL token.

USUAL is a multi-chain infrastructure synthesizing Real World Assets (RWA) that is being developed from entities such as BlackRock, Ondo, Mountain Protocol, M0, or Hashnote to convert them into a verifiable stable currency on-chain. USUAL is built on reallocating power and ownership to users and third parties, similar to the scenario where Tether's TVL providers will own the company and related revenue.

Moreover, USD0 IS NOT AN ALGORITHMIC STABLECOIN, it does not operate by burning or minting volatile tokens. It is 100% backed by the U.S. Treasury, the safest and most liquid asset in the world. The relationship between USD0 (& USD0++) and USUAL is simply the revenue accrued from the underlying collateral assets which will flow to USUAL, through a revenue-based mechanism, rewarding users.

3. COMMENTS

Regarding similarities:

-LUNA and USUAL both issue their own stablecoins.

Regarding differences:

-UST operates on a mechanism of burning and minting the LUNA cryptocurrency.

-USD0 and USUAL operate as RWA-backed projects that are 100% supported by U.S. Treasury bonds, the safest and most liquid asset in the world. That is, it is secured by real-world assets.

-In the two bullet points above, you can self-assess the safety and risk levels of both.

Are you looking for a project to compare with USUAL?

I would suggest $MKR (MAKER) which was recently renamed to SKY, a project issuing stablecoins with Real World Assets (RWA). Of course, compared to the long history in the market, USUAL is much younger than MAKER. As for the development potential of USUAL, let's wait for the ROADMAP.

4. Conclusion

The article above is based on research from the Meinya Spotlight channel. It references information from various relevant news and media sources. During the writing process, there may still be many shortcomings, I hope everyone understands and provides feedback. Any contributions and discussions can be left in the comments below, I will respond as soon as possible.