This morning, USD0++ had a big problem. The price suddenly collapsed. The reason was that Usual changed the rules. The 1:1 redemption promised before was no longer valid.
Now there are two ways to exchange USD0++: one is to deduct part of your profit, but still exchange it at 1:1; the other is to exchange it directly at the price of 0.87, which means a loss of 13%.
Now those big investors who have a lot of USD0++ are panicking and selling them quickly. The price of USD0++ dropped to 0.946 in an instant.
What's more, this 0.87 floor price is similar to the liquidation line of 0.86 on Morpho. It feels like a reminder to those big guys who use revolving loans: "Be careful!"
Now everyone is watching how Usual will deal with the 13% price difference next week.
If the deducted profit is not much, such as only 0.5%, then USD0++ may soon return to 0.995.
But no matter what, this is actually a good thing for USUAL and USUALx holders - after all, USUAL has fallen a lot (down 58%), and this rule change may make it rise again.
However, Usual's operation this time was a bit too hasty. It would have been better if they had told everyone in advance so that everyone could be mentally prepared.