What does Usual do? #Usual
Usual Labs is a stablecoin startup whose core product is the stablecoin USD0. Usual Labs completed a $7 million financing in April this year, led by IOSG Ventures, with participation from GSR, Mantle, Starkware, Flowdesk, Avid3, Bing Ventures, and X Ventures. The stablecoin USD0 is backed by M0-level highly liquid short-term risk-free assets and has high security. Its community governance token USUAL solves the problem of the current stablecoin market governance token air by improving the community profit distribution mechanism and protocol income distribution. At present, Usual's TVL has reached a TVL level of US$355 million and has 50,000 real users.
Usual Product Building
Usual is the hub of TradFi and DeFi. It has integrated RWA token liquidity from platforms such as Hashnote, Ondo, Backed, M^0, Blackrock, Adapt3r and Spiko. Usual's product construction is mainly based on stablecoin USD0, liquidity pledge token USD0++ and governance token USUAL, building a trinity product matrix.
(1) Stablecoin USD0
Well-known stablecoins such as Tether's USDT and Circle's USDC are anchored by the US dollar. Taking USDT as an example, every USDT issued by Tether is backed by the same US dollar, and the two correspond one to one. This type of stablecoin with physical support is called "collateralized stablecoin", which is also the largest stablecoin in the current Crypto market. Stablecoins make it easier for users to trade and store assets, reducing asset volatility.
In addition to fiat-collateralized stablecoins, there are also over-collateralized stablecoins (such as DIA) and algorithmic stablecoins (such as UST). However, in actual situations, the latter two types of stablecoins are not as secure and stable as fiat-collateralized stablecoins.
Usual labs' stablecoin product USD0 is also a "collateralized stablecoin" whose anchored assets are government debt bonds, which are what we usually call treasury bonds. Since M0 is used as the collateral behind it, it is called "USD0". Usually, the collateralized stablecoins supported by fiat currencies are partially guaranteed by the reserves held by commercial banks. However, assets guaranteed by commercial bank reserves will be affected by monetary policy. At the same time, the bankruptcy of banks will also greatly threaten the security and stability of stablecoins.
Usual labs' original intention of building stablecoins is to give stablecoins more security. Stablecoins should be supported by assets closely related to the central bank's currency (M0) and avoid commercial currency links, because commercial currency links will introduce systemic risks to bank reserves. The essence of the endorsement behind it is still a risky asset, not a risk-free asset. The government bonds collateralized by USD0 are the best choice for collateralizing stablecoins. They provide the highest level of liquidity and security in the current monetary system and are often regarded as risk-free assets by economists.
(2) Liquidity pledge token USD0++
Stablecoins like USDT and USDC have generated massive profits of over $6 billion in 2023, yet the value they create is retained by a small group of shareholders. These entities operate similarly to central banks, privatizing profits while socializing risks.
In order to allow users to share the profits of holding USD0, Usual Labs developed a second token product in its product construction: USD0++. USD0++ is a liquid staking token of USD0, which distributes rewards in the form of $USUAL tokens.
USD0++ is similar to T-Bill in traditional finance. T-Bill is a short-term debt instrument issued by the U.S. Treasury, also known as Treasury bills. Usually T-bills are sold at a price below par, do not pay interest in the traditional sense, and their investment return comes from the difference between the purchase price and the maturity face value.
The essence of USD0++ is actually ve-token in Curve. Users lock their USD0 for 4 years and obtain protocol benefits in the form of USUAL tokens by holding USD0++.
During the Usual Labs Pills event, USD0++ awarded points in the form of Pills. Users can get airdrops at the end of the event based on Pills points. However, USD0++ is different from points. Points cannot be circulated or further converted into cash, while USD0++ has liquidity in the secondary market. Users can obtain it through USD0 or trade it directly in the secondary market. In addition, USD0++ will be integrated with many other DeFi protocols, such as Pendle, to broaden the liquidity and application scenarios of USD0++.
(3) Governance Token USUAL
USUAL is Usual’s native governance token. In the current market environment, many governance tokens are empty shells and lack real value. These “air coins” are usually sold to retail investors who do not have professional investment capabilities, and the design of token economics will allow insiders to benefit from the dilution mechanism and use retail investors as exit liquidity.
However, Usual wants to break the vicious practice in the industry.
Ø The USUAL token is designed with a deflationary mechanism. Its issuance is linked to the TVL of staked USD0 (USD0++), creating scarcity when new TVL enters. Early adopters get more tokens. As the total locked value (TVL) increases, fewer USUAL tokens are allocated.
Ø USUAL is distributed with a community focus. Approximately 90% of USUAL tokens are distributed to the community, protecting them from insider dilution. Unlike other contributors and investors who hold 50% of the tokens, insiders will never own more than 10% of the circulating supply, ensuring fair value distribution.
In terms of token value capture, USUAL also has a wide range of application scenarios. On the one hand, by staking USUAL, you can get 10% of the newly added USUAL as a reward. On the other hand, holders holding USUAL gain governance rights.
Price Prediction:
The total supply of USUAL is 4 billion, and the circulating supply after listing is 494,600,000 (about 12.37% of the total token supply). Based on the previous market value of new coins listed, the opening price is around $4-5.5.
At the same time, the inflation rate of the Usual token is relatively mild, and 64% of the token shares are allocated to the community as community incentives, which shows that Usual Labs attaches great importance to community building.
The essence of Usual's "trinity" product design is to improve the traditional stablecoin and governance token mechanism and introduce the ve token model. When ordinary users gradually realize that the tokens issued by most projects are "air coins", USUAL's governance model based on stablecoins is undoubtedly a major attempt to benefit retail investors and the community. However, the competition in the stablecoin track is still fierce. If USD0 wants to grab market share from old mortgage stablecoins such as USDT and USDC and break the user's inertia of using stablecoins, it must not only take a differentiated route in products, but also gradually educate the market in community and market construction in order to embark on the road of sparks that will set the prairie on fire.
This time, Binance launchpool also held a new user event;
New users who register on Binance and complete KYC (real-name authentication), have a trading volume greater than or equal to 100U, and visit the Binance APP at least once during the event, will receive 50 USUAL rewards for each of the first 250 users who successfully participate each day.
🔸Highest rebate link https://www.binance.com/join?ref=JR65ECDY
Invitation code: JR65ECDY #Launchpool
