Usual
Usual is a decentralized issuer of fiat-backed stablecoins, designed to provide stability, security, and decentralized governance within the cryptocurrency sector. Its primary stablecoin, USD0, is supported by real-world assets, intended to maintain a stable value for users operating in fluctuating markets. Usual’s governance model redistributes ownership and decision-making responsibilities among holders of its governance token, USUAL. [1] [2] [3]
Overview
Usual’s approach centers on stability and decentralization, responding to the demand for stablecoin options. By employing a governance structure that delegates control among USUAL token holders, Usual aligns with decentralized principles and emphasizes community-driven transparency. This governance model enables token holders to participate in decision-making related to stablecoin issuance, risk management, collateral, and the protocol’s development strategy. [1] [2]
Technology
Usual operates on a blockchain infrastructure that uses decentralized ledger technology to support transparency, security, and immutability. This distributed ledger relies on a consensus mechanism involving network participants (nodes) to verify transactions and maintain data integrity, reducing the risks associated with single points of failure and unauthorized modifications.
Key technological elements of Usual include:
- Smart Contracts: Usual employs self-executing smart contracts, which enforce agreements without intermediaries, enhancing accuracy and efficiency, particularly for complex financial transactions.
- Scalability: Usual’s infrastructure accommodates high transaction volumes by implementing techniques like sharding or Layer 2 protocols, which optimize network efficiency and support potential large-scale usage.
- Privacy and Transparency: Transactions on Usual’s blockchain are visible, while user identities remain pseudonymous.
The governance model within Usual’s framework extends to a participatory system, allowing USUAL token holders to influence protocol development, contributing to ecosystem resilience and adaptability. [1] [2]
Use Cases
Usual aims to bridge traditional and decentralized finance (DeFi) by offering a fiat-backed stablecoin to provide value stability in the cryptocurrency market.
The following areas illustrate potential applications of USD0:
- DeFi and Peer-to-Peer Transactions: USD0 supports DeFi activities by providing a stable medium of exchange and store of value for users within the cryptocurrency ecosystem.
- Supply Chain and Healthcare: Usual’s blockchain technology can enhance transparency in supply chains and improve secure data management in healthcare, sectors reliant on precise record-keeping and trust.
- Smart Contract Automation: In fields such as insurance and supply chain settlement, smart contracts facilitate efficient, automated transactions, reducing reliance on intermediaries.[1] [2] [3]
Development
Usual Labs launched USD0 as its primary product, emphasizing decentralization in fiat-backed stablecoins. Following a $7 million funding round led by Kraken Ventures and IOSG Ventures, Usual continued its development in areas including infrastructure decentralization and the addition of T-Bill and infinite yield features for USD0.
In 2024, Usual took part in global blockchain events such as the European Blockchain Convention, Paris Blockchain Week, and Consensus by CoinDesk, engaging with other blockchain professionals and presenting advancements in stablecoin technology and DeFi integration. [1] [3]
USD0 and USD0++
USD0 is the first Liquid Deposit Token (LDT) introduced by the Usual Protocol, functioning as a stablecoin backed 1:1 by Real-World Assets (RWA) with short maturities. This design provides a stable and secure asset with continuous redeemability and transparency in reserves, distinguishing it from traditional stablecoins. [4]
Key Features of USD0:
- Reserve Transparency: USD0 maintains real-time accessible reserves and avoids fractional reserve practices, promoting greater stability.
- Collateral Security: USD0 is fully backed by U.S. Treasury Bills and repos, reducing risks associated with fractional reserves and exposure to the banking system.
- Unified Liquidity: USD0 consolidates liquidity across various deposits, supporting an integrated financial infrastructure within the protocol. [4]
USD0++ is an enhanced liquid T-bill bond, secured by principal locked in USD0 for a four-year period. It allows participation in the protocol’s value and provides rewards in the form of USUAL tokens. USD0++ is designed to offer a guaranteed low-risk yield, with the potential for additional returns. [5] [6]
Key Characteristics of USD0++:
- Principal Security: The principal in USD0 remains immobilized within the protocol, minimizing direct principal risk.
- Interest Rate Stability: Through the Base Interest Guarantee (BIG) mechanism, USD0++ ensures a yield linked to the rates of underlying assets, stable against interest rate volatility.
- Secondary Market Liquidity: USD0++ can be traded on the secondary market, allowing for flexible buying and selling.
- DeFi Composability and Integration: USD0++ is compatible with various DeFi protocols, enabling use across a wide range of decentralized financial products.
- Governance and Revenue Distribution: USD0++ provides governance and revenue-sharing benefits through USUAL tokens, which distribute a share in the protocol’s revenues.
USD0++ serves as a DeFi asset designed to balance secondary market liquidity flexibility with stable yields, applicable across various market conditions. [4] [5] [6]
Governance
The USUAL token is central to Usual’s decentralized governance structure, allowing holders to participate in decisions affecting the protocol. Token holders vote on policies, risk management, and liquidity decisions. Additionally, USUAL facilitates community-driven revenue redistribution, aligning incentives with protocol objectives. [1] [2]
Airdrop
Usual Labs initiated an airdrop campaign called the Pills Campaign ahead of the USUAL token launch. Pills are pre-launch points that users can accumulate to determine their allocation of USUAL tokens at the Token Generation Event (TGE), representing 7.5% of the token’s initial supply. These points can be earned through several activities, including providing liquidity to the Usual protocol, holding USD0++, interacting with partner protocols, and referring others.
This initiative is part of Usual’s efforts to engage early participants in its ecosystem by rewarding contributions during its bootstrapping phase. The Pills Campaign, which ran on the mainnet and through platforms such as Galxe, allowed users to complete various tasks to earn Pills. These tasks included participating in liquidity pools, engaging in community activities, and completing steps on external platforms. The airdrop took place in Q4 2024, following the close of the campaign in mid-November. Through this campaign, Usual aimed to distribute governance and decision-making powers more widely among early supporters. [7] [8] [7]