$USUAL's usd0 and usdt are both stablecoins, but they operate differently!

usdt is backed by US dollars, issuing usdt for everyone to use.

They deposit money in banks or buy government bonds, earning some interest as their own profit. In simple terms, they use your US dollars to make money, keeping all the profits for themselves.

On the other hand, usd0 operates at a higher level; they also use collateral, but the collateral is government bonds.

For example, if everyone exchanges 10 billion US dollars worth of government bonds for usd0, usd0 will use that 10 billion to buy government bonds. After a year, when the bonds mature, they will become 11 billion, and then they will keep buying new bonds, like rolling a snowball.

The extra 1 billion interest earned is usd0's additional revenue, of which 90% is distributed to users!

Moreover, usd0's staking rewards don't stop there; every time someone exchanges usd0 or usdc, they have to pay a fee, and that money also goes into usd0's pocket.

Added to the money earned when usd0 issues more tokens, the profits can be quite substantial.

In short, usdt uses your US dollars to make a little money for themselves, while usd0 uses government bonds as collateral, willing to share the profits with users, making it more reliable.

Also, usual is a collateralized stablecoin, which is different from those stablecoins calculated by algorithms.