What is Usual and How Does it Work?
Usual Labs is an innovative startup specializing in stablecoins, with its flagship product being USD0. Earlier this year, the company secured $7.5 million in funding, spearheaded by IOSG Ventures, with contributions from renowned players like GSR, Mantle, Starkware, Flowdesk, Avid3, Bing Ventures, and X Ventures. USD0 is backed by M0-level highly liquid, short-term, risk-free assets, ensuring unparalleled stability and security. Moreover, Usual Labs introduces USUAL, a governance token designed to revolutionize the profit-sharing and revenue distribution models within the stablecoin ecosystem. The project has already gained significant traction, with a Total Value Locked (TVL) of $360 million and an active user base of 55,000 individuals.
A Holistic Product Ecosystem by Usual
Usual Labs serves as a bridge between traditional finance (TradFi) and decentralized finance (DeFi). It has integrated Real World Asset (RWA) token liquidity from platforms like Hashnote, Ondo, Backed, M^0, BlackRock, Adapt3r, and Spiko. Its ecosystem is built on three core products: the stablecoin USD0, the liquidity staking token USD0++, and the community-focused governance token USUAL, forming a robust product trio.
1. USD0: A Stablecoin Redefined
Stablecoins like USDT and USDC are pegged to the US dollar, backed by fiat reserves, and serve as the cornerstone of the cryptocurrency ecosystem. They offer users a low-volatility asset to facilitate trading and storing value. However, not all stablecoins are created equal—over-collateralized stablecoins (like DAI) and algorithmic stablecoins (like UST) have faced challenges in maintaining stability.
USD0 stands apart as a fiat-collateralized stablecoin, backed by treasury bonds—arguably the safest financial instruments available. Unlike stablecoins tied to commercial bank reserves, USD0 is collateralized by M0-level assets, sidestepping systemic risks associated with banking failures and monetary policy shifts. This unique structure ensures that USD0 remains secure and liquid, offering users unparalleled confidence in its stability.
2. USD0++: Pioneering Liquidity Staking
The stablecoin industry, led by giants like USDT and USDC, generated over $6.5 billion in profits in 2023, yet the benefits largely flowed to a small group of stakeholders. Usual Labs aims to disrupt this imbalance with USD0++, a liquid staking token that distributes rewards directly to users.
USD0++ operates like a short-term U.S. Treasury Bill (T-Bill). Users lock their USD0 holdings for up to four years, earning rewards in USUAL tokens. Unlike traditional points-based reward systems, USD0++ is tradable in secondary markets, offering users liquidity alongside staking benefits. Additionally, USD0++ integrates with leading DeFi protocols like Pendle to expand its utility and use cases.
3. USUAL: A Governance Token With Real Value
Governance tokens in the current crypto market often lack intrinsic value and serve as vehicles for insiders to exploit retail investors. Usual Labs aims to change this narrative with USUAL, a governance token that prioritizes community benefits.
Deflationary Issuance: USUAL’s supply is tied to the TVL of staked USD0 (USD0++), creating scarcity as adoption grows. Early adopters are rewarded with higher token allocations.
Community-Centric Distribution: Approximately 92% of USUAL tokens are allocated to the community, ensuring fair value distribution. Insiders are limited to holding no more than 8% of the circulating supply, eliminating risks of excessive dilution.
Token Utility: USUAL holders can stake their tokens to earn rewards (up to 11% annually) and participate in governance decisions, giving them direct influence over the protocol's future.
Price Outlook and Growth Potential
The total supply of USUAL is capped at 4.2 billion tokens, with an initial circulating supply of approximately 500 million (around 12% of the total). Based on market trends for new projects, USUAL's opening price is projected to range between $4.25 and $5.75. The token's inflation rate is mild, with 66% of the supply dedicated to community incentives, reflecting Usual Labs’ strong focus on community engagement.
By combining USD0’s stability, USD0++’s profit-sharing mechanism, and USUAL’s governance model, Usual Labs is setting a new standard in the stablecoin ecosystem. Unlike many governance tokens labeled as "empty shells," USUAL provides tangible benefits to retail users and promotes equitable value distribution. However, USD0 faces stiff competition from established stablecoins like USDT and USDC. To capture market share, Usual Labs must differentiate its products and focus on educating the community to build trust and drive adoption.
Usual's Market Expansion and Community Engagement
To promote adoption, Binance is hosting a special event for new users:
Eligibility: New Binance users who complete KYC, achieve a trading volume of at least $105, and visit the Binance app daily can earn 55 USUAL tokens as a reward. The first 260 users to qualify each day will receive these tokens.
For more details, check out Binance’s promotional campaign:
🔗 Join Usual on Binance
Conclusion: Usual’s Transformative Vision
Usual’s trinity of products redefines the stablecoin and governance token landscapes by introducing a fair, community-centric model. With USD0 providing unparalleled stability, USD0++ sharing profits with users, and USUAL offering real governance value, Usual Labs is poised to disrupt the status quo. While challenges in market education and competition remain, Usual’s approach lays the foundation for a transformative future in decentralized finance.
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