USD0++ Floor Price
Last updated
Last updated
USD0++ is a liquid staking token tied to USD0, with the underlying collateral held until its maturity on June 30, 2028. This structure promotes long-term commitment to the protocol, benefiting the DAO and USUAL token holders through the yield generated by the collateral. To accommodate users who prioritize liquidity, the protocol introduces a Price Floor Mechanism, allowing the redemption of USD0++ for USD0 at a discounted rate. This mechanism balances liquidity needs with the protocol’s sustainability, ensuring the DAO retains the projected future revenue forfeited by users opting for early redemption.
The price floor reflects the expected revenue the DAO would earn until USD0++ matures. It is calculated using Federal Reserve interest rates, interpolating between available rates to ensure accuracy. Currently, the floor is set manually (e.g., 0.87 USD0 per USD0++) but will evolve into an automated, on-chain process as oracles like Chainlink or Redstone integrate dynamic rate data. As time progresses, the price floor converges toward 1, aligning with the protocol’s maturity date. This mechanism safeguards USUAL’s value and ensures USD0++ yields remain robust, rewarding long-term ecosystem participants while providing liquidity options for others.