Glossary of Usual Protocol Terms
Alpha Yield (α-yield): The rewards from Liquid Bond that are given in USUAL tokens, linked to the success of the protocol
Base Interest Guarantee: Offers Liquid Bond holders the right to claim the native yield of the underlying asset by voiding the USUAL reward.
Collateral Provider (CP): An entity that supplies the protocol with liquidity in the form of RWAs or other assets, facilitating the issuance of USD0.
Deposit: The action of transferring assets into the Usual protocol in exchange for USD0.
Direct Mint: A method where users deposit an eligible Real World Asset (RWA) into the protocol to receive an equivalent amount of USD0 on a 1:1 basis.
Fiat Currency: Government-issued currency that is not backed by a physical commodity but rather by the state that issued it. Examples include the US dollar, Euro, and Yen.
Indirect Mint: A method where users deposit USDC or USDT into the protocol to receive USD0 on a 1:1 basis. In this method, a third-party collateral provider supplies the necessary RWA collateral, enabling users to obtain USD0 without directly handling RWAs.
Liquid Bond (LBT): These tokens are composable, transferable, and tradable at market value. They reward holders with USUAL tokens. The Liquid Bond ticker is simple, adding "++" to the end of the USD0 ticker.
LDT (Liquid Deposit Token): Represents a user's deposit within the Usual protocol, backed 1:1 by the deposited asset and fully redeemable under normal conditions, providing a liquid and secure claim on the protocol.
Money Market Funds (MMFs): Mutual funds that invest in short-term, high-quality debt securities, aiming to offer high liquidity and low risk.
Parity Arbitrage Right (PAR): A mechanism allowing the protocol to maintain LBT value by enabling interventions under certain market conditions.
Pre-launch Phase: The initial stage before the full public launch of the Usual protocol, during which participants can connect to the platform, help establish the foundational Total Value Locked (TVL), and obtains Pills.
Price Stability Module: Ensures efficient USD0 minting by managing collateral provided by CPs, maintaining market stability and accessibility.
Redeem Primary: The process of directly withdrawing the Real World Asset (RWA) that backs your LDT tokens at Usual's counter, converting digital holdings into physical assets.
Redeem Secondary: The process of selling your LDT, such as USD0 tokens, for USDC or USDT on the secondary market. USD0 is fully redeemable at Usual's counter, maintaining a stable 1:1 peg with the underlying asset through continuous arbitrage opportunities.
RWA Collateral: Real World Assets used to back USD0, consisting of highly liquid, low-risk assets like US Treasury Bills.
Token Swap: The exchange of one type of token for another within the Usual platform, facilitated by the Usual Counter, allowing users to adjust their holdings to meet their investment strategies or liquidity needs.
USD0: The first Liquid Deposit Token (LDT) on Usual, serving as the native stablecoin and backed by Real World Assets (RWA) to ensure stability and reliability.
USD0++: The first Liquid Bond Token (LBT) on Usual, representing an enhanced version of USD0 that is locked to accrue additional rewards. It can be redeemed at maturity or traded at any time at market value.
Usual Counter: The operational hub within the Usual dApp where users manage deposits, withdrawals, and token swaps.
Usual Deck: Investment platform within Usual where users can make their LDTs productive by converting them into LBTs or providing liquidity.
Usual Labs: The collective behind the Usual protocol, consisting of experts focused on protocol integrity, governance, and development.
Usual Vault: Secure on-chain storage for collateral assets, providing transparency and real-time management of assets backing LDTs.
USUAL: Governance and reward token of the Usual protocol, used for making governance decisions and distributing protocol rewards.
Withdrawal: The process of redeeming Liquid Deposit Tokens (LDTs) at the Usual protocol to reclaim the underlying assets, ensuring users have continuous and direct access to their investments.
U.S. Treasury Securities: Debt obligations issued by the U.S. Department of the Treasury, considered very low-risk investments because they are backed by the full faith and credit of the U.S. government.
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