Let's talk about the USD0++ depegging incident that caused a lot of controversy this morning.
To put it bluntly, Usual suddenly changed the rules and changed the original 1:1 rigid redemption.
The new rules have two exit methods: either accept part of the income to be burned but still be able to exchange it at 1:1, or directly accept the loss of 13% and exchange it at a guaranteed minimum of 0.87.
This scared the big players and directly triggered panic selling. The price of USD0++ once fell to 0.946.
The funniest thing is that this 0.87 guaranteed bottom line is almost completely overlapped with the 0.86 liquidation line on Morpho. . .
It feels like it is aimed at those big players who play circular lending, and they are just short of saying "brothers, take it easy."
In the short term, the market is obviously still waiting and watching, and everyone is waiting to see how Usual will deal with the 13% space next week. If the burning ratio is set low, for example, it is only 0.5%, USD0++ is expected to return to 0.995 soon.
But in any case, this adjustment is actually good for USUAL and USUALx holders - USUAL has fallen 58% from its high point, and this wave of reforms may help it stand up again.
Usual's operation is indeed a bit hasty, at least it should be notified in advance so that everyone can be mentally prepared. . .
