Usual Protocol: solving problems of decentralized finance

Why Usual Protocol is Changing the Stablecoin Market

Stablecoins play a key role in connecting traditional finance with decentralized finance, however, existing solutions have significant drawbacks. Large providers accumulate billions in profits that are not distributed to users. Access to real assets (RWA) remains limited for most market participants. Furthermore, the lack of transparency in collateral management creates trust issues.

Usual Protocol addresses these issues through a decentralized financial architecture that democratizes access to RWA and fairly distributes economic benefits among ecosystem participants.

How Usual Works: Three Key Tokens

The Usual ecosystem is built on three interacting components that create a universal system for interacting with real assets.

USD0: stablecoin backed by real assets

USD0 is the entry point into the Usual ecosystem. This stablecoin stands out for its ease of launch and transparency of backing:

• Users can create USD0 by depositing approved collateral without permissions.
• The collateral consists of low-risk investments, such as U.S. Treasury bills.
• The details of the reserves are verified both on-chain and off-chain through regular independent audits.

The minting of USD0 can be done in two ways: directly ( the user deposits collateral ) or indirectly ( through DAO assistance for those who cannot hold certain assets ).

The protocol ensures security through strict collateral standards. Only fully collateralized, liquid assets without leverage are permitted. Additionally, there is an insurance fund to cover potential losses.

USD0++: liquid form for blocked tokens

USD0++ is a liquid staking token that represents USD0 locked until June 30, 2028. This mechanism allows users to:

• Earn USUAL tokens proportional to the locked USD0
• Trade USD0++ on secondary markets, even while the main assets remain locked.

Several options for early unlocking are provided for flexibility: burning a certain amount of USUAL tokens at a 1:1 ratio, redemption at a minimum price through the DAO, or unlocking during extreme market conditions through a parity arbitrage mechanism.

USUAL: governance and reward token

USUAL serves as a reward mechanism and management tool. Its design ensures:

• Income-based minting: the speed of USUAL generation adapts to the actual income of the protocol.
• Staking Rewards: participants can earn additional USUAL by holding tokens
• Governance Voting: USUAL holders decide which assets to accept as collateral, how to distribute the treasury, and adjust the reward structure.

The dynamic minting mechanism takes into account the supply of USD0++, fluctuations in interest rates, and parameters set by the DAO.

Current Market Position

According to the latest data, USUAL is trading at $0.02 with a daily increase of +0.04%. The protocol has a circulating market cap of $38.28M with over 1.5 billion tokens in circulation. The trading volume over the past 24 hours is $695.07K.

Incentives and Network Effect

To ensure sufficient liquidity, Usual rewards liquidity providers with additional USUAL tokens for participating in the USD0 or USUAL pools.

The Path to Decentralization

Usual Protocol begins with centralized oversight from Usual Labs for a smooth launch. Over time, management will fully transition to Usual DAO, where decisions are made collectively by USUAL holders and early investors. This ensures a shift from a centralized model to a true decentralized autonomous organization.

Summary

Usual Protocol represents a comprehensive approach to solving the long-standing issues of the stablecoin market. Through the multi-token system (USD0, USD0++, USUAL) and innovative mechanisms, the protocol will bridge the gap between traditional finance and decentralized finance. Fair distribution of rewards, ensured transparency, and democratic access to RWA position Usual as an alternative to existing solutions.