FAQ
General Questions
What is Usual Protocol?
USUAL is a secure and decentralized Fiat Stablecoin issuer that redistributes ownership and governance through the $USUAL token.
Why Usual?
Usual addresses key flaws in current stablecoin systems by redistributing both value and ownership through its governance token. Unlike Tether and Circle, which generated over $10B in 2023 without sharing wealth with users, Usual ensures equitable distribution of generated value. By integrating Real-World Assets directly into DeFi, Usual provides a more secure, transparent, and decentralized alternative that aligns with the principles of decentralized finance.
Additionally, Usual empowers users to become true owners of the protocol. This is achieved by allowing them to control the infrastructure, treasury, and governance through the governance token. This model not only rewards early adopters but also promotes long-term value creation and ensures the stablecoin remains fully collateralized by secure, short-term assets, avoiding the risks associated with traditional banking systems.
Who founded Usual Labs?
Usual Labs was founded by a team of experienced professionals in finance, technology, and product development, dedicated to revolutionizing the financial landscape with innovative solutions.
Which blockchain will Usual be deployed on?
Usual will be deployed on the Ethereum mainnet, with interoperability planned across multiple blockchains to ensure broad accessibility and integration.
Have Usual contracts been audited?
Usual’s smart contracts have undergone rigorous audits by multiple reputable cybersecurity firms. The audit results will be publicly available to ensure transparency and trust.
How can Usual scale?
Usual is uniquely designed to surpass the scalability limits often associated with other stablecoins. It is backed by Real-World Assets (RWAs), enabling seamless integration of liquidity from the traditional financial sector. Moreover, Usual's structure actively encourages the introduction of new liquidity by offering incentives to users and can introduce new asset types. This approach ensures that Usual can efficiently absorb and leverage market liquidity and expand beyond stablecoins, fostering extensive growth and robustness within the decentralized finance (DeFi) ecosystem.
How does Usual secure/protect my deposit?
Your deposits are securely held in our smart contracts, remaining passively store and not exposed to any other financial risks associated with Usual. Our smart contracts undergo rigorous audits by various cybersecurity auditors to ensure the safety of user funds and protocol integrity.
How Usual Protocol Works
How does Usual Protocol work?
Usual enables users to deposit US Treasury Bills and receive USD0, Usual's USD stablecoin. With USD0, users can purchase the enhanced T-Bill (USD0++), allowing them to earn rewards in USUAL tokens.
What is $USD0?
USD0 is a stablecoin fully backed 1:1 by Real-World Assets (RWA) like US Treasury Bills. It provides users with a stable, secure asset that is independent of traditional banking systems, fully transferable, and accessible within the DeFi ecosystem. As the core stability asset of Usual, USD0 supports transparency and security by maintaining real-time reserves, offering a non-fractional, reliable alternative to stablecoins like USDT and USDC.
What is $USD0++?
USD0++ is a liquid staking version of USD0, acting like a savings account for Real-World Assets with a 4-year lock-up. It offers rewards while remaining transferable, with $USUAL rewards incentivizing the growth and adoption of USD0.
What is the USUAL token?
$USUAL is the governance token powering the Usual protocol, uniquely designed with an intrinsic value tied directly to the protocol’s revenue model.
$USUAL drives the adoption and use of USD0, aligning incentives for contributors and fueling protocol growth. Its innovative distribution model sets the stage for new DeFi possibilities, accelerating ecosystem expansion and sustainable decentralization.
USD0, Fiat USD Stablecoin
What is USD0?
USD0 is a stablecoin fully backed 1:1 by Real-World Assets (RWA) like US Treasury Bills. It provides users with a stable, secure asset that is independent of traditional banking systems, fully transferable, and accessible within the DeFi ecosystem. As the core stability asset of Usual, USD0 supports transparency and security by maintaining real-time reserves, offering a non-fractional, reliable alternative to stablecoins like USDT and USDC.
Utility: Payment, Trading Counterparty, Collateral
Why USD0?
Usual tackles fundamental challenges in the stablecoin market by blending Real World Assets (RWAs) with a decentralized finance (DeFi) governance model. Here are the key features of our approach:
Redistributive Model: Unlike typical fiat-backed stablecoins that retain all returns for the issuers, Usual equitably aligns risks and rewards, democratizing financial power. This model directly challenges the traditional financial paradigm where profits are privatized and losses are socialized.
Permissionless and Composable: USD0 is designed to be both permissionless and composable, providing users with unfettered access to higher yields and sophisticated liquidity strategies.
Real-time Transparency: To counter the prevalent market opacity, Usual commits to enhancing transparency by automatically providing the latest information on collateral in real time.
Decentralized Issuance: Usual bridges permissioned assets with DeFi through increasingly decentralized governance, reducing dependencies and vulnerabilities associated with centralized control. This approach addresses common failures witnessed in recent collapses among centralized entities.
Scalability: Backed by the deep, liquid Treasury Bill (T-Bill) market, Usual's tokens offer scalability into the trillions, positioning them favorably against cryptocurrency-backed stablecoins that face challenges in handling similar volumes.
Isolated Collateral: The collateral backing Usual tokens is isolated from the balance sheets of entities responsible for their transfer and custody, significantly enhancing security and providing bankruptcy-remote guarantees.
Risk-Free Collateral: Comprising solely of cash or cash equivalents such as short-duration US T-Bills, Usual's collateral ensures robust backing by tokenized real-world assets, maintaining stable 1:1 parity with the U.S. dollar.
Capital Efficiency: USD0 is backed with full capital efficiency. Users always mint and redeem 1:1, making Usual’s capital efficiency 100% compared to overcollateralized protocols. The Usual treasury acts as overcollateralization as the protocol’s revenues grow.
How to mint USD0?
Mint USD0 by depositing USDC into the mint engine or directly using eligible assets like USYC as collateral. Usual’s dApp will always guide you to the best route, ensuring you get the optimal price for your USD0, whether through the primary or secondary market.
How to redeem USD0?
USD0 is redeemable 24/7 at a 1:1 rate (1 USD0 = 1$ collateral asset) into eligible collateral. This collateral can then be redeemed through our partners for other stablecoins or in fiat form. Note: Redemption requires registration with the issuing partner.
What is USD0 collateral?
USD0 is backed exclusively by secure, short-term assets, including US Treasury Bills obtained through overnight repos, adhering to Usual's stringent risk policy. Usual Labs has meticulously selected the initial collateral following extensive due diligence of market participants to minimize counterparty and default risks. This strategy affords USD0 holders a level of security that exceeds that offered by competitors.
Usual will soon disclose the details of the initial collateral. Future collateral options may vary, subject to governance decisions aimed at diversifying holdings and mitigating risks, ensuring sustained security and stability for USD0 holders.
What sets USD0 apart as a high-quality stablecoin?
USD0 distinguishes itself as a premier stablecoin, featuring real-time transparency of reserves, eliminating the fractional reserve risks associated with commercial banks. Fully collateralized by US Treasury Bills, USD0 is insulated from the bankruptcy risks that plague other fiat-backed stablecoins dependent on bank-held assets. This robust financial structure ensures that USD0 holders enjoy unparalleled security and stability.
Where can I purchase USD0 tokens?
USD0 tokens can be purchased on the secondary market, initially available on decentralized exchanges (DEXs) and soon to be listed on centralized exchanges (CEXs).
What can I do with USD0 tokens?
USD0 tokens are designed to serve multiple purposes within the decentralized finance (DeFi) ecosystem:
Value Storage: USD0 serves as a stable store of value, ensuring the stability of your digital assets against market volatility.
Liquidity Provision: Utilize USD0 to provide liquidity in various DeFi protocols, enhancing their efficiency and your potential returns.
Investment Opportunities: Bond USD0 into a USD0++, which is an Enhanced T-Bill. This conversion offers a productive investment avenue, allowing holders to potentially increase their returns while maintaining asset security.
USD0++, USD0 LST
What is USD0++, USD0 Liquid Staking Token?
USD0++ is a liquid staking version of USD0, acting like a savings account for Real-World Assets with a 4-year lock-up. It offers rewards while remaining transferable, with $USUAL rewards incentivizing the growth and adoption of USD0.
What is the α-yield for USD0++ holders?
The α-yield represents the token rewards that USD0++ holders receive, distributed in the form of USUAL tokens.
How to be entitled to the α-yield for USD0++ holders?
Every USD0++ holder, you automatically earn α-yield, with your USUAL tokens accruing daily.
At what frequency is the α-yield distributed?
USUAL tokens accrue daily. USD0++ holders can claim their tokens at any time.
If I purchase an USD0++ on the secondary market, am I entitled to receive the α-yield?
Yes, whether USD0++ are acquired via primary issuance or the secondary market, holders are automatically entitled to claim USUAL tokens.
Example: I buy an USD0++ on the secondary market and am automatically entitled to claim USUAL tokens.
What happens if I don't claim my USUAL rewards?
If you do not claim your USUAL tokens, you can claim them in the future at any time, provided you do not opt for the base yield guarantee.
What is the maturity period for USD0++?
The maturity period for USD0++ is four years, during which they can be traded at market value.
When can I unlock USD0++ to USD0?
You’re free to exit USD0++ at any time, even with your USD0 locked up, thanks to flexible options:
Exit at the market price for USD0++ on secondary markets. The value won’t drop below a DAO-defined floor price, representing the projected remaining risk-free yield tied to USD0.
Or, redeem 1:1 (1 USD0++ = 1 USD0) by returning a portion of the $USUAL rewards earned over the past six months.
What are the risks associated with USD0++?
As locked tokens, USD0++ do not inherently possess a cost-free open arbitrage mechanism for maintaining their peg, potentially resulting in price volatility.
However, this risk is mitigated through robust liquidity in the secondary market, supported by Liquidity Provision Incentives , and the early redemption mechanisms.
These measures collectively enhance price stability and market efficiency. In extreme scenarios, the volatility of USD0++ is limited through the implementation of the Price Floor Redemption mechanism.
Getting Started
How do I get started with Usual Protocol?
To get started, deposit USDC into the Usual Protocol to receive USD0, or simply purchase some on the secondary market.
How do I deposit assets into Usual Protocol?
Deposit eligible assets directly into the protocol’s mint engine to mint USD0 through the Usual Swap section.
How can I generate Liquid Staking Tokens (LSTs)?
Convert your USD0 into USD0++ or simply purchase USD0++ on the secondary market through the Usual Swap. You will be eligible for rewards in USUAL tokens.
How do I withdraw my assets?
Redeem your USD0 at any time to withdraw the underlying assets from the protocol, ensuring continuous access to your investments. You need to be register with our partners.
Security and Governance
How is the security of my assets ensured?
Assets are securely stored in audited smart contracts, protected by advanced security measures and regular audits to mitigate financial risks.
How does Usual protect my deposit?
Deposits are passively stored in secure smart contracts, with rigorous cybersecurity audits ensuring the safety and integrity of user funds.
What role do USUAL token holders play in governance?
USUAL token holders actively participate in governance decisions, influencing the protocol’s direction, policies, and future developments.
How can I participate in governance decisions?
Engage in voting and proposal submissions as a USUAL token holder, contributing to the protocol’s governance and shaping its evolution.
Earning and Rewards
How can I earn USUAL tokens?
Earn USUAL tokens by converting USD0 into USD0++ and participating in various protocol activities such as providing liquidity or staking your USUAL, aligning your interests with the protocol’s success. During the Pills campaign, you will receive Pills that grant access to USUAL tokens at the TGE scheduled for Q4 2024.
What is the Alpha Yield (α-yield)?
Alpha Yield refers to the higher yield expected from USUAL token rewards compared to traditional RWA yields, enhancing the attractiveness of participating in the protocol.
Partnerships and Integration
Who are Usual Protocol's partners?
Usual collaborates with various financial and blockchain entities to enhance protocol functionality, offering users a comprehensive and integrated financial ecosystem.
How can I use my Usual Assets with partners?
Spend and utilize your Usual Assets through integrations with our network of partners, facilitating seamless transactions and expanding usability.
What are the future plans for asset integration?
Governance decisions will guide the addition of new assets, continuously expanding the protocol’s capabilities and diversity to meet user needs.
Addressing Current Issues
How does Usual address current issues in the stablecoin market?
Usual tackles fundamental challenges by aggregating Real World Assets (RWAs) with decentralized governance, ensuring transparency, scalability, and equitable risk-reward distribution.
What actions is Usual taking to promote transparency and fairness?
Usual promotes transparency by openly disclosing collateral and guaranteeing that all tokens are backed 1:1 with the underlying assets, ensuring fairness and trust.
Troubleshooting and Support
What should I do if I encounter an issue?
Refer to our troubleshooting guide or contact support through our official channels for prompt assistance with any issues.
How can I contact Usual Protocol support?
Reach out via our support channels, including email and community forums, for quick and effective assistance.
Where can I find the latest updates and announcements?
Stay informed through our official communication channels, including our website, social media, and community platforms.
Feedback and Community
How can I provide feedback about the protocol?
Submit feedback through our official channels and community forums, helping us improve the protocol based on user experiences and suggestions.
How can I get involved with the Usual community?
Join community discussions, participate in events, and engage with initiatives to be an active and influential member of the Usual community.
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