Usual ($USUAL) is a decentralized stablecoin project that can be analyzed from several aspects based on its latest news and the characteristics of the token itself.

Project Background and Positioning:

Usual is a stablecoin developed by Usual Labs, with its core product being USD0. The project aims to create a secure and decentralized stablecoin ecosystem by tokenizing real-world assets (RWA). Usual Labs completed a $7 million funding round in April 2024, led by IOSG Ventures, reflecting market confidence in its innovative model.

Token Economics:

$USUAL is the native token of the Usual ecosystem, with a distribution strategy favoring the community, allocating 90% of the tokens for the public and liquidity provision, and only 10% to the team and investors. This distribution mechanism aims to incentivize early participants and liquidity providers. The issuance of $USUAL will be dynamically adjusted based on the Total Value Locked (TVL), with deflationary properties, meaning that as the TVL grows, the issuance rate of $USUAL will slow down, potentially increasing its scarcity.

Characteristics of Stablecoins:

The stablecoin USD0 of Usual is backed by high liquidity, low-risk assets such as U.S. Treasury bonds, providing a stable value foundation. At the same time, Usual offers a staking mechanism (USUALx), where stakers can receive 10% of the newly minted USUAL as rewards, attracting more users to participate in staking and enhancing the liquidity and stability of the ecosystem.

From recent market data, $USUAL has shown excellent trading performance on Binance, indicating strong market demand and investor interest. Although there is significant volatility during pre-market trading, it also reflects the market's attention to its potential. Feedback from the community regarding Usual has been largely positive, emphasizing its innovation and security in the stablecoin market.

With the implementation of the European (Crypto Asset Market Regulation) (MiCA), non-compliant stablecoins like USDT are forced to exit the European market. This change provides new opportunities for other stablecoin issuers.

The continuous expansion of the stablecoin market, especially considering the involvement of payment giants and government regulation, gives Usual the potential to become an important player in the market. However, fierce competition in the stablecoin market, along with regulatory uncertainties, may pose challenges for Usual in the future. Additionally, how to continuously attract and maintain high TVL is key to its long-term development.

We can see that the current APY of USUAL is attractive to the market. The current volatility of Bitcoin has led the market to prefer stable returns for capital protection, resulting in the spiral rise of USUAL. However, if there is a sharp price drop, USUAL will also experience significant price retracement. This Ponzi-like capital distribution model still requires caution.