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.

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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.