$USUAL $

white paper#

Usual Docs

Why Usual?

Usual is based on three key observations:

Tether and Circle generated over $10B in revenue in 2023, with valuations exceeding $200B. None of this generated wealth is shared with the users who contribute to their success.

Real-World Assets (RWA) are growing, but their integration into DeFi remains challenging despite the arrival of on-chain US Treasury Bills. This is evident from the fact that there are fewer than 5,000 holders of RWA on the mainnet.

DeFi users desire exposure to the success of projects they support. The current yield distribution model fails to adequately incentivize users who take on greater risks by joining early and contributing to the project's success. Usual give both yield and growth exposure.

1. Rebuilding Tether On-Chain: Neutrality and Transparency

Cryptocurrency needs a fiat-backed stablecoin that is fully on-chain, supported by an infrastructure that ensures enhanced neutrality, transparency, and security.

Usual introduces a model that aims to rebuild Tether fully on-chain. In this system, the issuer is controlled by the holders of the Usual governance token. This includes decision-making over risk policies, the nature of the collateral, and liquidity incentive strategies.

Decentralized Control: By leveraging blockchain technology, Usual ensures that control is decentralized. This allows for solid and resilient neutrality.

2. Fiat Stablecoin need to be Bankruptcy remote

Fiat-backed stablecoins are partly collateralized by reserves held in commercial banks. This exposes them to the fractional reserve practices of these banks, compromising the security and stability of the stablecoin. The recent collapse of SVB Bank highlighted the systemic risks commercial banks pose to DeFi due to their under-collateralization.



Fiat-Backed Stablecoins Face Increased Risk Due to Bank Fractional Reserve Exposure

The primary imperative of a stablecoin is to ensure that its value remains stable relative to the currency it represents. Users must have unwavering confidence that their capital is secure. Usual offers a collateralization model that is not tied to the traditional banking system but directly to very short-term bonds. The security provided by this prudent approach is reinforced by a strict risk policy and an insurance fund.

Bankruptcy Remote: Usual is not exposed to the fractional reserve system of commercial banks, ensuring that its stablecoin is 100% collateralized by secure and very short-term assets.not exposed to fractionnal reserve

3. Put an End to the Privatization of Profits

Tether and Circle generated over $10B in revenue in 2023, with valuations exceeding $200B. Yet, none of this wealth is shared with the users who contribute to their success. Usual is designed to provide an alternative to fiat-backed stablecoins that privatize profits from customer deposits while socializing losses. Centralized actors behind major fiat-backed stablecoins replicate the problematic structures of traditional banking, which contradict the principles of decentralized finance.

Usual's approach aims to create a fairer financial system by redistributing value and power more equitably among all users.

Usual's goal is to empower users to become owners of the infrastructure, treasury, and governance of the protocol. By redistributing 100% of the value and control through its governance token, Usual ensures that its community holds the reins.

The Usual protocol allocates its governance token to users and third parties who contribute value, realigning financial incentives and returning power to the participants within the ecosystem.



Usual redistributes 100% of the value and control through its governance token.

Fair Value Distribution: Usual seeks to create a fairer financial system where the value generated is more equitably shared among all users, rather than concentrated among a few shareholders.

4. Revolutionizing Stablecoin Ownership & Growth Exposure

Unlike traditional stablecoins like Tether, which retain all revenues for their shareholders, or yield-bearing stablecoins that redistribute only yields to users through permissioned mechanisms, Usual takes a transformative approach giving both yield and growth exposure to the user.

How It Works

Usual aggregates the yield generated by the collateral backing its stablecoin into the protocol’s treasury. Rather than redistributing this yield directly as cash flow, the value is retained within the protocol, enhancing the intrinsic worth of the governance token ($USUAL). This token grants users both ownership and decision-making power over the protocol, its treasury, and future revenues, aligning incentives and fostering sustainable growth.

Key Features of Usual’s Model:

Ownership and Revenue Sharing:

Treasury Allocation: 100% of the protocol’s revenues flow into the treasury, and 90% of the ownership of these revenues is distributed to the community via governance tokens.

Actual Cash Flow: Reflecting real-time protocol revenues in the treasury.

Future Cash Flow: Based on potential growth in Total Value Locked (TVL) and protocol revenues.

Governance Rights:

Holders of $USUAL can influence key decisions such as revenue redistribution, collateral management, and risk policies.

Utility Rights:

$USUAL tokens unlock staking opportunities, validator token mechanisms, and “bribing” strategies akin to the Curve War, enabling users to redirect liquidity incentives and enhance token utility.

Why Usual Stands Out

This model not only redistributes revenue but also ownership, creating powerful incentives for early adopters. By aligning interests among participants through transparent, public token distribution, Usual establishes a robust foundation for sustainable growth and decentralized governance. It is a protocol designed to reward community engagement, giving users a meaningful stake in its present and future success.

Become an owner: Many models claim to be redistributive but fail to enable long-term value creation. Usual goes beyond merely redistributing protocol revenues; it redistributes the ownership of the protocol itself. This approach empowers users to make decisions about the future of the protocol's treasury, ensuring genuine stakeholder involvement and sustainable growth.

Link:

https://coinmarketcap.com/currencies/usual/