The cryptocurrency landscape is evolving rapidly, and amidst its myriad complexities, stablecoins have emerged as central playersServing as a vital component, stablecoins provide the necessary stability for large-scale transactions and are instrumental in facilitating mass adoption of digital currenciesBy July 30, 2024, stablecoins boasted an impressive cumulative market capitalization of $168 billionA closer examination reveals that a staggering 90% of this total is dominated by two centralized stablecoin giants, Tether (USDT) and USD Coin (USDC).

In essence, stablecoins can be regarded as the currency printers of the crypto realmThe titans of this sector, Tether and Circle, reported an incredible revenue of over $10 billion in 2023, with valuations soaring past $200 billionTether alone scored a record profit of $4.52 billion in the first quarter of 2024. Such monopolistic earnings starkly contrast with the ethos of decentralization that so many in the crypto community advocate

As a result, numerous decentralized stablecoin projects are continually emerging to challenge this status quoDecentralized stablecoins can generally be classified based on their collateralization strategiesFor instance, MakerDAO’s DAI exemplifies over-collateralization, while Ethena’s USDe uses a one-to-one collateral systemNotably, under-collateralized projects have yet to capture significant market share.

While several decentralized stablecoins have achieved success, they often rely on volatile crypto assets for collateralThis requirement necessitates the implementation of sophisticated mechanisms to counteract price fluctuationsAn innovative solution to alleviate this challenge is the introduction of Real World Assets (RWAs). The appetite for RWAs has been growing, with a staggering 800% increase in blockchain-related RWAs recorded in 2023. Usual.money stands at the forefront of this trend by utilizing U.S

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Treasury bonds as collateral, enhancing transparency and security through Ethereum smart contracts and redistributing profits back to the community and contributorsThis pioneering design effectively creates a tether-on-chain, combining the 1:1 RWA backing characteristic of centralized stablecoin protocols with the security and transparency inherent to blockchain technology.

In April 2024, Usual Labs celebrated a significant milestone, securing $7 million in funding, led by IOSG and Kraken VenturesParticipating investors included GSR, Mantle, Starkware, and several others, showcasing the considerable interest in the projectBy July 10, Usual proudly announced the launch of its mainnet, and by August 6, the project achieved a total value locked (TVL) of $146 million.

According to data from Coinmarketcap on August 6, nearly 95% of transactions involving USD 0 were taking place in Curve's USD 0/USDC liquidity pool, which maintained a robust liquidity figure of $11.33 million

Moreover, collaborations with platforms like Maverick Protocol saw the integration of stablecoin GHO from Aave and USD 0, with a TVL of around $100,000.

Encouragingly, USD 0 has also been participating in novel lending projects such as Morpho, where MEV Capital orchestrated a vault involving liquidity pairs like USD 0 and USDCThis particular liquidity pool has amassed almost $30 million in collateral, boasting an impressive liquidation loan-to-value (LLTV) ratio of 86%. This dynamic structure allows users to reap incentives from Usual's Pills rewards program while simultaneously benefiting from Morpho's token incentives.

Looking ahead, the token generation event (TGE) for $USUAL is anticipated in the fourth quarter of 2024, with a remarkable 90% of the supply earmarked for community distribution.

Mechanically, the minting and collateralization process for USD 0 is innovative and user-friendly

As an aggregator of various U.STreasury tokenized assets, USD 0 can be minted in two distinct ways:

aDirect RWA Deposits: Users can deposit eligible RWAs directly into the protocol and receive USD 0 at a 1:1 ratio based on the asset’s value.

bIndirect USDC/USDT Deposits: In this method, users can deposit USDC or USDT into the protocol and receive USD 0 likewise at a 1:1 ratioThis process involves third-party collateral providers who supply the necessary RWA backings, simplifying it for users as they do not need to engage directly with RWAs to benefit from the system.

Despite the significant growth of RWAs, they still constitute a relatively small fraction of the underlying assets in the cryptocurrency marketThe primary challenge lies in liquidity, as institutions face hurdles in unwinding RWA holdings on secondary markets, while retail investors struggle to access RWA yields within the core DeFi ecosystems

USD 0 aims to seamlessly integrate liquidity tokens for RWAs from platforms like Hashnote, thus fostering broader accessibility within the decentralized finance landscape.

Additionally, another offering, $USD 0++, functions as a premium treasury bondEssentially, $USD 0++ represents a wrapped and locked version of USD 0.

For participants in the Usual ecosystem, $USUAL serves as both a governance and reward tokenUsers can derive earnings by staking their USD 0 in USD 0 Liquid Bond (USD 0++) for defined periodsThere are two distinct options for users to collect returns:

aUSUAL Token Yield: Holders of Liquid Bonds can earn their rewards daily in the form of USUAL tokens, which are calculated with each block.

bBase Interest Protection: This mechanism ensures that USD 0++ holders earn at least returns equivalent to those garnered by USD 0's collateral; essentially offering risk-free unit returns

To benefit from this, users must lock their USD 0++ for a specified duration, currently designed to last for six monthsAt the conclusion of this period, users can choose to withdraw their returns in either USUAL tokens or as the risk-free earnings from USD 0.

It should be highlighted that whether USD 0++ is acquired via primary issuance or from secondary markets, holders automatically qualify for USUAL tokens.

Furthermore, the interactive components of Usual's ecosystem include the Pills initiative, which underwent an initial launch phase starting July 10, with a four-month durationDuring this air-drop event, 7.5% of the total $USUAL supply will be minted upon the TGE, with users eligible for airdrop allocations based on their contributions, similar to Ethena's incentive structureThis distribution model is linear, whereby the more deposited, the greater the rewards received.