Whitepaper
The whitepaper outlines the initial state of the protocol during the TGE. It does not reflect updates made by governance, whether on products or mechanisms.
The Usual Whitepaper is the definitive technical and economic reference for the Usual Protocol. It presents the protocol’s core principles, vision, architecture, and mechanisms—covering everything from its RWA-backed stablecoin infrastructure to disinflationary tokenomics and a community-first governance model.
What the Whitepaper Covers
The whitepaper provides a comprehensive treatment of the following areas:
Vision & Problem Statement
Usual addresses a structural imbalance in the stablecoin market: centralized issuers such as Tether and Circle generated over $10 billion in combined revenue in 2023 from user-deposited collateral—without sharing that value with the users who enabled it.
Usual reimagines this model by redistributing 100% of protocol value to the community through the USUAL governance token.
Architectural Design
The protocol is organized into two distinct layers:
Usual Collateral Bridge Infrastructure
The foundational layer that manages Liquid Deposit Token (LDT) minting and redemption, as well as collateral onboarding. It bridges both permissioned (institutional) and permissionless (retail/DeFi) participants.
Product Offerings Layer
Products built on top of LDTs—including Liquid Bond Tokens (bUSD0), Liquidity Yield Tokens (LYTs), Instant Yield Tokens (IYTs), and staking modules—that support ecosystem sustainability and growth.
Core Products
USD0 — The first Liquid Deposit Token (LDT): a USD-pegged stablecoin fully backed by US Treasury Bills and reverse repurchase agreements, with on-chain verifiable reserves.
bUSD0 — A Liquid Bond Token (LBT) that locks USD0 to generate yield via daily USUAL token coupons, with guaranteed 1:1 redemption at maturity (June 2028).
USUAL — The governance and revenue-sharing token representing ownership of 100% of protocol revenue.
USUALx — Staked USUAL. USUALx receives 22% of all daily emissions (an immutable right) and also receives protocol revenue via the Revenue Switch.
RWA Collateral & Risk Management
The whitepaper specifies strict eligibility criteria for accepted collateral:
Fully collateralized — No leverage or fractional reserve exposure
Low risk — Only sovereign bonds (US Treasury Bills) with the lowest market risk
Transparent — On-chain verifiable with frequent off-chain audits
Liquid — Portfolio duration capped at 0.33 years (≈ 4 months)
Zero tolerance for FX risk and credit risk (no corporate debt)
A Multi Collateral Controller dynamically manages portfolio composition across multiple RWA providers (including Hashnote USYC, M by M0, USDtb, and others). It uses a dual-layer system—continuous reward adjustments and triggered rebalancing—to maintain robust diversification.
Revenue Switch & Value Distribution
The Revenue Switch, activated on January 13, 2025, distributes protocol revenue directly to locked USUALx stakers in USD0 on a weekly basis.
The protocol generates approximately ~$27 million per year in revenue (conservative estimate), creating a direct and measurable link between protocol growth and token-holder returns.
Governance
USUAL and USUALx holders govern critical protocol parameters, including:
Collateral onboarding
Fee structures
Emission allocations
Treasury management
Insurance fund sizing
This governance model ensures the protocol evolves in line with community interests.
Safety Mechanisms
The whitepaper describes multiple safety mechanisms:
Counter Bank Run Mechanism — An insurance fund that burns LDT to maintain the salvageable redemption value per USD0
Instant Yield Tokens (IYTs) — A repegging mechanism that uses secondary-market buybacks to restore bUSD0 parity
This document is updated as the protocol evolves, incorporating governance-driven advancements, new products, and tokenomics reforms.
Last update: Nov 2025
Last updated