CoinVoice has recently learned that, according to The Block, the update of the Usual Money protocol has caused its staked stablecoin USD0++ to drop in price by 8.5% on decentralized exchanges, from $1 to $0.915. The protocol introduced a dual-path exit mechanism, allowing users to redeem USD0++ at a floor price of $0.87 USD0, or choose to forfeit part of their earnings for a 1:1 redemption, but the changes made without prior notice have sparked criticism from the community.
USD0++ was originally a zero-interest bond-type token locked for four years, with a typical market value of $0.855, but could previously be redeemed 1:1 for USD0. After the update, a large number of holders sold off USD0++, leading to a severe imbalance in the Curve pool, causing price fluctuations of up to 92%. Community members accused the team of not providing prior notice, locking up a large amount of funds, but some believe this move will help stabilize things in the long term. [Original link]