The issuance mechanism of USUAL mainly includes the following aspects:
Minting of the stablecoin USD0
- Direct RWA Deposits: Users can directly deposit eligible real-world assets (RWA), such as U.S. short-term Treasury bonds and overnight reverse repurchase agreements, into the protocol and receive an equivalent value of USD0 at a 1:1 ratio.
- Indirect USDC/USDT Deposits: Users can deposit USDC or USDT into the protocol and receive USD0 at a 1:1 ratio. This method involves third-party collateral providers supplying the necessary RWA collateral.
Issuance of the governance token USUAL
- Dynamic Minting: USUAL is not minted all at once, but rather dynamically minted daily based on a series of formulas and parameters. Its issuance is linked to the total locked value (TVL) of USD0 (USD0++) from staking. When new TVL enters the system, it creates scarcity. Additionally, it will adjust according to market interest rate fluctuations; when the Fed or market interest rates rise and the actual returns available from the project are higher, the system will moderately increase the token issuance.
- Distribution Method: The total amount of USUAL is 4 billion, with an initial circulation accounting for 12.37% of the total token supply, while the rest will be unlocked over the coming years until fully unlocked by 2028. Of these, 90% of the tokens are allocated to the community, including USD0++ holders, liquidity providers, stakers, and users participating in other protocol products; 10% is allocated to insiders such as the team, advisors, and investors.
- Incentive Mechanism: Stakers can receive 10% of the total minted amount as rewards. By staking USUAL, holders activate governance rights and receive 10% of newly issued USUAL, incentivizing long-term behavior.
