Interpreting the Breakthrough Path of the Innovative Stablecoin USUAL
With the continuous rise in BTC prices this year, the total market capitalization of the cryptocurrency market has peaked at $3.9 trillion, with BTC alone nearing $2 trillion. In the ranking of market capitalizations of U.S. companies, it is only behind Apple, Nvidia, Microsoft, Amazon, and Google's parent company Alphabet. Meanwhile, as a stablecoin that anchors cryptocurrencies and token issuance, the total supply of stablecoins has reached $187.5 billion, setting a new historical high. The number of transactions and trading volume have increased by 30%-40%.
As a core tool of the cryptocurrency ecosystem, stablecoins not only enable rapid exchanges between assets but are also seen as an important indicator of new capital inflows. Their basic definition is a cryptocurrency pegged to fiat currencies or other assets to achieve value stability.
In the stablecoin race, USDT maintains its dominant position in the stablecoin field due to its massive total market capitalization, while USDC has gained market recognition through compliance. The emerging algorithmic stablecoin USDe has rapidly risen through celebrity endorsements and ongoing brand collaborations, successfully carving out a niche in the market.
Stablecoins have become the "profit printing machine" of the blockchain field. In the first quarter of this year alone, Tether, the issuer of USDT, achieved over $4.52 billion in profits, setting a historical record. In comparison, Tether's net profit for the entire year of 2023 is $6.2 billion, and the rapid growth of profits in this quarter is remarkable, showcasing the astonishing profitability behind the stablecoin market.
In April this year, the stablecoin newcomer Usual Labs secured $7 million in funding and subsequently launched the stablecoin USD0, attempting to carve out a new territory in this blue ocean.
## 1. What is Usual?
In the past year, Tether and Circle have generated over $10 billion in revenue, with a valuation exceeding $200 billion. However, these earnings have not been shared with the users who contributed to their success, which is contrary to the principles of contribution and profit in the current crypto ecosystem.
What Usual aims to do is to return the ownership of token issuance and the profits generated from it back to the users. Usual's goal is to give back the ownership of token issuance and the profits generated to users, achieving true decentralized wealth distribution.
In the Usual Protocol, users earn USD0 by depositing assets, and this token serves as a deposit certificate (LDT) within the protocol. Users holding USD0 have two options: they can either lock it up to provide liquidity or convert USD0 into liquidity bond tokens (LBT), namely USD0++, allowing them to deeply participate in the DeFi ecosystem and earn returns.
These returns include airdrop rewards of the project governance token $USUAL, as well as potential deposit earnings generated within the protocol. Through this design, Usual not only grants users higher participation and profit rights but also enables them to become an important part of the protocol's ecological development.
## 2. How does Usual operate?
When users deposit assets, the Usual protocol generates Liquid Deposit Tokens (LDT) equivalent to the deposit amount as synthetic assets. LDT represents the initial value of the user's deposit in the protocol and is backed by the deposited original assets at a 1:1 ratio. LDT allows users to redeem the underlying assets at any time under normal circumstances, providing permanent withdrawal rights to its holders. Additionally, LDT can be freely traded without permission, bringing liquidity and greater operational flexibility to users.
With LDT, users can unlock profit leverage in the DeFi world. For example, users can provide liquidity using LDT or choose to lock it for a certain period to generate Liquidity Bond Tokens (LBT). LBT offers users additional liquidity, transferability, and composability, facilitating seamless integration and efficient trading within DeFi. More importantly, users actively participating in these interactions will also receive rewards in Usual's governance tokens.
The core philosophy of Usual is to create a fair-based financial ecosystem by distributing value and power more equitably among users. Usual aims to make users the true owners of the protocol's infrastructure, funds, and governance.
To achieve this goal, Usual redistributes 100% of the value and control back to the community through governance tokens. Governance tokens not only give users a leading role in the protocol's development but also ensure that financial incentives are adjusted for participants within the ecosystem. By distributing tokens to users and third parties that contribute value, Usual achieves fair resource circulation and further solidifies the core position of community governance. This new financial model reshapes the relationship between users and the protocol, allowing every user to become a true participant and beneficiary of the ecosystem.
## 3. Advantages of the USUAL ecosystem
Usual leverages a multi-chain infrastructure to successfully bring tokenized real-world assets (RWA) from leading institutions such as BlackRock, Ondo, and Mountain Protocol onto the blockchain. Through this integration, Usual has created the permissionless, on-chain verifiable, and composable stablecoin USD0, seamlessly connecting traditional financial assets with blockchain technology. This model not only provides users with more efficient and secure asset stability guarantees but also injects broader asset support into the DeFi ecosystem.
The minting mechanism of USD0 is designed with great flexibility, supporting two methods: users can directly deposit eligible RWA assets to obtain USD0, or they can deposit USDC/USDT to receive an equivalent USD0, with necessary RWA collateral provided by third parties as support. This dual model lowers the participation threshold for users while significantly enhancing the overall liquidity of the stablecoin, providing convenient access for retail users and institutional investors.
In addition, Usual has not only launched the base stablecoin USD0 but also designed an appreciation token USD0++, providing users with flexible earning options. Users can earn governance token USUAL rewards daily by locking assets or choose to lock for a fixed period to obtain stable, risk-free returns. This comprehensive earning mechanism meets users' diverse needs between low risk and yield growth, making USD0 not just a value storage tool but a dynamically appreciating financial asset.
## 4. USUAL Team and Funding Information
Usual is a strong project founded by former French Member of Parliament Pierre Person, whose team has deep expertise in policy promotion and blockchain technology, ensuring the project's compliance and global expansion. In 2024, Usual completed two rounds of funding totaling $8.5 million and achieved a total locked value (TVL) of $369 million through excellent product design and market strategy. This strong market performance fully demonstrates Usual's growth potential and industry competitiveness, injecting more confidence and momentum into its future development.
## 5. USUAL Token Economics
The fiat stablecoin issuer Usual has its governance token USUAL, which will have actual revenue from the platform protocol, future income, and ownership of infrastructure. According to official information, the total supply of the fiat stablecoin issuer Usual token USUAL is 4,000,000,000, with an initial circulation accounting for 12.37% of the total supply, amounting to 494,600,000. Of this, 73% is allocated to the public and liquidity providers to ensure broad distribution of the tokens. 13.5% is allocated to market makers (MM), the team, and early investors. Another 13.5% is used for DAO, buybacks, voting, and other community governance activities to support the long-term development of the ecosystem.
The distribution mechanism of the SUAL token is highly inclined towards community users, fully reflecting the concepts of decentralization and fair distribution. Among them, 90% of the tokens will be allocated to the community, including USD0++ holders, liquidity providers (LP), stakers, and users participating in other protocol products. At the same time, as Usual achieves a multi-asset structure, the future token distribution scope will further expand to cover LBT and LP rewards for other assets, ensuring that various users can benefit from the protocol's growth.
The USUAL token has multiple utilities within the protocol ecosystem. First, holders can enjoy all the revenue from the protocol, directly sharing in the economic results of ecosystem development. Second, token holders can earn rewards of 10% of the supply through staking while participating in protocol governance, such as key decisions regarding treasury reinvestment. Additionally, USUAL introduces a token burn mechanism, allowing users to burn USUAL tokens to unlock USD0++ that has been staked early, further enhancing the circulation value and operational flexibility of the tokens.
In terms of dynamic supply adjustment, the issuance mechanism of the USUAL token is dynamically adjusted based on the protocol's TVL (total locked value). When TVL increases, the token issuance decreases accordingly; conversely, it increases. This design ensures that token issuance is closely synchronized with the protocol's development, providing assurance for the long-term sustainability of the ecosystem.
## 6. Future Value Analysis of USUAL
The economic model design of the UAL token is robust and attractive, injecting innovative vitality into the RWA stablecoin field. USUAL is not only a core tool for protocol governance but also endows the token with actual value supported by revenue, giving it scarcity and appeal. Stakers can receive 10% of all minted amounts as rewards, and this incentive mechanism effectively encourages users to actively participate in staking, providing strong support for the sustainable development of the protocol ecosystem.
In terms of inflation control, USUAL demonstrates excellent performance. Its minting volume is strictly constrained by the available supply of USD0++ and real-world interest rates, avoiding the dilution of token value due to disorderly inflation. This meticulous design ensures the long-term stability of the token, making it a high-value and potential investment target in the market.
