BlockBeats news, on January 1, Usual's official statement indicated that yesterday (UTC December 31, 07:00 AM), the Usual protocol experienced a massive sell-off of USD0 triggered by a single whale trade in the secondary market, raising users' doubts about the peg of USD0 to the US dollar. USD0 briefly fell to $0.99, showing some basis point deviations due to ongoing sell-offs, but quickly regained its full peg. All dollar stablecoins in the market may exhibit price fluctuations of a few basis points around $1, which is a normal phenomenon brought about by the dollar stablecoin mechanism.
USD0 can always be redeemed at a 1:1 ratio for its underlying collateral to ensure the solvency of the Usual protocol. Redemptions are processed through smart contracts, and currently, any whitelisted entity can access this; our ultimate goal is to make it completely permissionless. USD0 also has strong secondary liquidity, which depends on tokenized RWA issuers. Usual has chosen a diverse range of assets such as USYC, Ethena's USDTB, Securitize's BUIDL fund under BlackRock, and Ondo's OUSG, ensuring multiple exit routes and optimal liquidity. This event is a significant stress test of the USD0 dollar peg, and Usual remains strong while always focusing on the stability of the system.