Usual Docs
  • Start Here
    • What is Usual?
    • Why Usual?
    • Usual Model
    • FAQ
    • Glossary
  • Usual Products
    • USD0 Stablecoin
      • Why USD0?
      • RWA Collateral
      • Flow & Architecture
        • RWA Aggregator
        • Mint USD0
        • Redeem USD0
        • Provide RWA collateral
    • USD0 Liquid Staking Token
      • Why USD0++?
      • USD0 Staking Module
      • USD0++ Characteristics
      • USD0++ Alpha Yield
      • Parity Arbitrage Right (PAR)
      • USD0++ Floor Price
      • USD0++ Early Redemption Mechanism
    • ETH0 Synthetic
      • Why ETH0?
      • ETH0 Characteristics
      • How does ETH0 work?
      • Collateral and Risk
    • USUAL Governance Token
      • Why USUAL?
      • Why Is USUAL Inherently Valuable?
      • USUAL Tokenomics
        • Emission Model
        • Distribution Model
        • Contributor Token
      • Usual Staking Module
      • Usual Governance
    • Usual Stability Loans (USL)
    • Usual Vaults
      • ustUSR++ Vault
  • Resources & Ecosystem
    • Whitepaper
    • Technical Docs
    • Smart Contracts
    • Integrate USD0++
    • Audits
    • Legal Documentation
      • Legal Notice
      • Privacy Policy
      • Terms of Services
    • Analytics
    • USD0 Risk Policy
      • Financial Risk
        • Interest Rate Risk
        • FX Risk
        • Credit Risk
        • Insurance Fund
      • Third Party Risk
        • Counterparty Risk
        • Liquidity Risk
    • Usual Backers
    • Media Assets
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  • Problem
  • Solution
  1. Usual Products
  2. USD0 Liquid Staking Token

Why USD0++?

Problem

Many DeFi protocols distribute their revenues directly to users, but this approach often falls short in creating long-term incentives or providing meaningful benefits to early liquidity providers when the protocol succeeds.

For example, Yield-Bearing Stablecoins distribute a significant portion of their underlying revenues when staked. While this benefits users in the short term, it does not offer exposure to the protocol’s growth. Consider a rebase stablecoin that distributes 5% of the collateral’s monetary interest rate. Even if the protocol’s Total Value Locked (TVL) grows by billions, the user’s return remains static—a stablecoin yielding the same 5%.

This model also fails to address the issue of mercenary liquidity, where users move their capital opportunistically to chase higher returns elsewhere. Without mechanisms to foster long-term engagement, such protocols struggle to build sustainable ecosystems, limiting their potential for growth and stability.


Solution

Usual is one of the first stablecoins issuer to redistribute generated value in the form of a governance token via USD0 LST, directly incentivizing protocol liquidity. 100% of the generated revenues are pooled into the protocol's treasury.

Consequently, $USUAL is a genuine governance token, backed by real yield and revenue, granting ownership rights over the protocol’s actual revenues, future revenues, and infrastructure. This sets it apart from many other governance tokens, which often lack intrinsic value.

USD0++ serves as the primary vehicle for this distribution.

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Last updated 3 months ago

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