Usual: Yesterday, USD0 briefly fell to 0.99 dollars due to a large-scale sell-off of USD0 by a whale, and the peg has returned to normal
ChainCatcher news, Usual stated on social media that at 5 PM Beijing time yesterday afternoon, the Usual protocol experienced a large-scale USD0 sell-off triggered by a whale trading in the secondary market. This event raised questions about USD0's ability to maintain its peg to 1 dollar. USD0 briefly dropped to 0.99 dollars, then returned to the 1 dollar peg within seconds, although there was an initial deviation of several basis points (bps) due to the ongoing sell-off, it fully restored its peg after a few hours.USD0 can always be redeemed at a 1:1 ratio for its underlying collateral, ensuring the solvency of the Usual protocol. Currently, all USD0 can be redeemed on a T+0 basis and is supported by highly liquid short-term money market instruments.The peg has been restored to normal. This incident was the first significant stress test of USD0's pegging ability, with the redemption volume exceeding the entire TVL (Total Value Locked) of GHO within a few hours, yet the protocol continued to operate as usual. We will continue to optimize processes and improve efficiency, while many exciting updates are on the way.