Why USD0++?
Problem
Some DeFi protocols already distribute their revenues to users. However, this model fails to create long-term incentives or provide any upside to early liquidity providers if the protocol succeeds.
Take the example of a Yield Bearing Stablecoin. When staked, it distributes a majority share of the associated revenues. However, if the protocol attracts a significant amount of liquidity, the user does not benefit from any exposure to the protocol's growth. For instance, consider a rebase stablecoin that distributes 5% of revenue linked to the monetary interest rate of the collateral. Even if the protocol's TVL increases by billions, the result for the holder remains the same—a stablecoin yielding 5%.
Worse still, this model lacks mechanisms to create long-term incentives, thus failing to prevent mercenary liquidity phenomena.
Solution
Usual is one of the first stablecoins issuer to redistribute generated value in the form of a governance token, directly incentivizing protocol liquidity. 100% of the generated revenues are pooled into the protocol's treasury.
Consequently, $USUAL is a true governance token, granting ownership rights over the protocol's actual revenues, future revenues, and infrastructure ownership. This distinguishes it from many other governance tokens, which often lack real value.
USD0++ serves as the primary vehicle for this distribution, offering holders an enhanced T-Bill equivalent.
It provides the security of principal locked in USD0,
a speculative dimension allowing holders to earn yields in $USUAL based on the protocol's success,
and a minimum guarantee of T-Bill yields boosted by the floating circulating supply of unlocked USD0.
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