USUAL PROTOCOL (USUAL COIN)
$USUAL
The Usual Protocol is a decentralized finance (DeFi) platform that enables the issuance of fiat-backed stablecoins, such as USD0, through real-world asset (RWA) collateralization. It operates entirely on-chain, ensuring transparency, security, and decentralization.
At its core, the protocol aims to bridge traditional finance and decentralized ecosystems by utilizing ultra-short-term RWAs as collateral for stablecoins, reducing dependency on centralized systems like banks. Its native token, $USUAL, plays a key role in governance, value redistribution, and ecosystem operations.
Here’s a detailed overview of the Usual Protocol covering its fundamentals, benefits, future potential, and price prediction:
1. Fundamentals of Usual Protocol
The Usual Protocol is a decentralized finance (DeFi) platform designed to issue fiat-backed stablecoins and provide a transparent, community-driven ecosystem. Its native token, $USUAL, facilitates governance, value redistribution, and utility within the ecosystem. The platform leverages real-world assets (RWAs) to back its stablecoin, USD0, ensuring trust and transparency.
Key Components
Stablecoin USD0: A decentralized, fiat-backed stablecoin, collateralized with ultra-short-term RWAs.
Liquid Deposit Tokens (LDT): Tokens representing user deposits, which enhance liquidity and allow trading.
Community Ownership: A large portion of $USUAL tokens is allocated to the community, fostering decentralization.
Transparency: Operates entirely on-chain, eliminating the risks associated with centralized intermediaries.
2. Benefits of Usual Protocol
a. Decentralization
Unlike traditional stablecoins (USDT, USDC), Usual Protocol operates entirely on-chain, ensuring greater transparency.
Community-driven governance promotes fairness and inclusivity.
b. Stability
USD0 stablecoin is backed by RWAs, minimizing volatility and maintaining a 1:1 peg to fiat.
c. Liquidity
The issuance of Liquid Deposit Tokens (LDT) allows users to trade and interact with the protocol's ecosystem efficiently.
d. High Yield Potential
By leveraging RWAs, the protocol provides stable returns, making it attractive to institutional and retail investors alike.
e. Future-Proof Design
Built to address scalability and security concerns, Usual Protocol can adapt to evolving DeFi trends.
3. Future Potential of Usual Protocol
a. Growing Stablecoin Market
The demand for decentralized stablecoins is expected to grow as regulatory scrutiny increases on centralized options like USDT and USDC. Usual Protocol’s USD0 could become a preferred choice due to its transparency and RWA backing.
b. Real-World Asset (RWA) Integration
The integration of RWAs provides a bridge between traditional finance and DeFi, attracting institutional interest.
c. Expansion Plans
The $7M raised in 2024 from investors like IOSG and Kraken Ventures reflects confidence in its future. With strong backers, the protocol is well-positioned to expand its ecosystem.
d. Adoption in DeFi
USD0 and $USUAL could gain traction in decentralized exchanges (DEXs), lending platforms, and payment solutions, increasing their utility and demand.
e. Regulatory Compliance
Its transparent, on-chain operations and fiat-backed model may align with future regulations, giving it a competitive edge.
4. Price Prediction for $USUAL
Short-Term (2024-2025)
Bullish Scenario: Increased adoption of USD0 and ecosystem growth could push the price to $1.00 - $1.20.
Bearish Scenario: Market downturns or competition could lead to stabilization around $0.60 - $0.80.
Medium-Term (2026-2028)
As Usual Protocol expands its ecosystem and RWAs gain acceptance, Usual could reach $2.50 - $3.00, assuming continued adoption and market growth.
Long-Term (2030+)
With significant adoption, Usual could position itself as a major player in DeFi, potentially reaching $5.00+, depending on broader crypto market trends and regulatory developments.
Risks to Consider
1. Market Competition: Other stablecoin projects like DAI and LUSD could pose challenges.
2. Regulatory Uncertainty: Global regulations for DeFi and stablecoins could impact adoption.
3. Volatility: While USD0 is stable, Usual token is subject to market fluctuations.
Conclusion
The Usual Protocol presents a compelling case for innovation in the stablecoin market with its decentralized, transparent, and RWA-backed model. Its emphasis on community-driven governance and scalability positions it well for long-term success in the DeFi space. However, investors should consider market conditions and risks before making decisions.