Why Usual?
Usual is based on three key observations:
Tether and Circle generated over $10B in revenue in 2023, with valuations exceeding $200B. None of this generated wealth is shared with the users who contribute to their success.
Real-World Assets (RWA) are growing, but their integration into DeFi remains challenging despite the arrival of on-chain US Treasury Bills. This is evident from the fact that there are fewer than 5,000 holders of RWA on the mainnet.
DeFi users desire exposure to the success of projects they support. The current yield distribution model fails to adequately incentivize users who take on greater risks by joining early and contributing to the project's success.
1. Rebuilding Tether On-Chain: Neutrality and Transparency
Cryptocurrency needs a fiat-backed stablecoin that is fully on-chain, supported by an infrastructure that ensures enhanced neutrality, transparency, and security.
Usual introduces a model that aims to rebuild Tether fully on-chain. In this system, the issuer is controlled by the holders of the Usual governance token. This includes decision-making over risk policies, the nature of the collateral, and liquidity incentive strategies.
Decentralized Control: By leveraging blockchain technology, Usual ensures that control is decentralized. This allows for solid and resilient neutrality.
2. Fiat Stablecoin need to be Bankruptcy remote
Fiat-backed stablecoins are partly collateralized by reserves held in commercial banks. This exposes them to the fractional reserve practices of these banks, compromising the security and stability of the stablecoin. The recent collapse of SVB Bank highlighted the systemic risks commercial banks pose to DeFi due to their under-collateralization.
The primary imperative of a stablecoin is to ensure that its value remains stable relative to the currency it represents. Users must have unwavering confidence that their capital is secure. Usual offers a collateralization model that is not tied to the traditional banking system but directly to very short-term bonds. The security provided by this prudent approach is reinforced by a strict risk policy and an insurance fund.
Bankruptcy Remote: Usual is not exposed to the fractional reserve system of commercial banks, ensuring that its stablecoin is 100% collateralized by secure and very short-term assets.not exposed to fractionnal reserve
3. Put an End to the Privatization of Profits
Tether and Circle generated over $10B in revenue in 2023, with valuations exceeding $200B. Yet, none of this wealth is shared with the users who contribute to their success. Usual is designed to provide an alternative to fiat-backed stablecoins that privatize profits from customer deposits while socializing losses. Centralized actors behind major fiat-backed stablecoins replicate the problematic structures of traditional banking, which contradict the principles of decentralized finance.
Usual's approach aims to create a fairer financial system by redistributing value and power more equitably among all users.
Usual's goal is to empower users to become owners of the infrastructure, treasury, and governance of the protocol. By redistributing 100% of the value and control through its governance token, Usual ensures that its community holds the reins.
The Usual protocol allocates its governance token to users and third parties who contribute value, realigning financial incentives and returning power to the participants within the ecosystem.
Fair Value Distribution: Usual seeks to create a fairer financial system where the value generated is more equitably shared among all users, rather than concentrated among a few shareholders.
4. Revolutionizing Stablecoin Ownership & Yield Redistribution
Some models redistribute a portion of the yields generated by their stablecoins. Usual, however, adopts a different model where users pool the yield generated by the stablecoin's collateral. This yield forms the protocol's treasury. In return, users receive governance tokens, granting them control over the protocol, its treasury, and future revenues.
This mechanism not only redistributes revenue but also ownership of the system. It creates incentives for early adopters, providing them with significant upside potential.
The transparent and public distribution of the governance token ensures aligned interests among all participants.
Become an owner: Many models claim to be redistributive but fail to enable long-term value creation. Usual goes beyond merely redistributing protocol revenues; it redistributes the ownership of the protocol itself. This approach empowers users to make decisions about the future of the protocol's treasury, ensuring genuine stakeholder involvement and sustainable growth.
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