Usual
Usual is a decentralized protocol that issues USD0, a stablecoin fully backed by U.S. Treasury Bills and other short-term Real World Assets (RWAs).
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- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Token: USUAL
- Tags: RWA
- TVL: $1.5B (Rank #28)
- TVL Ranking by RWA: #1
- Blockchain: Ethereum
- Chain TVL
- Ethereum: $1.46B
- Code reviewed by several experienced auditors; Spearbit, Halborn, Sherlock
- Public team promotes accountability
- No documented protocol hacks since launch
- Latest protocol version launched in 2024; maturity over six months reduces technical risk as smart contracts are moderately battle-tested
- Top 1% by total value locked reduces risk
- Multisig wallet controls protocol upgrades
- Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
- No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
- At least one moderate governance issue documented
- Low voting power concentration reduces risk
- Protocol could be susceptible to negative feedback loops
- Robust controls to mitigate oracle price manipulation
- This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
What is Usual
Usual is a DeFi protocol designed to provide a stablecoin backed by U.S. Treasury yields, combining traditional finance principles with decentralized mechanics. Its ecosystem revolves around USD0, a stablecoin collateralized by Treasury bills, and USD0++, a staked version of USD0 that locks funds for four years in exchange for USUAL token rewards. The protocol’s design introduces a multi-layered structure, with USD0++ functioning as a zero-coupon bond—offering a fixed return at the end of the term while emitting USUAL tokens as an additional incentive. To enhance flexibility, Usual offers two exit mechanisms: a conditional exit that sacrifices accrued USUAL rewards for a 1:1 redemption and an unconditional exit that allows redemption at a discounted price (current floor price set at $0.87), gradually increasing over time to $1. Furthermore, Usual features advanced tokenomics, including USUALx, which distributes interest yield from Treasury bills, and USUAL*, which grants early investors a share of protocol fees and emissions. This layered approach aims to cater to both yield-seekers and speculative investors, albeit with a higher level of complexity and associated risks.
How Usual makes money
Usual generates revenue by deploying collateralized funds into Treasury bills, earning yield from these safe, traditional assets. This yield is currently retained by the protocol and partially redistributed to USUALx stakers after deducting fees. The protocol also earns from exit penalties, staking fees, and the spread between its dual exit mechanisms, leveraging its structured design to capture multiple revenue streams.
How you make money on Usual
Users can earn by staking USD0 to convert it into USD0++ and farming USUAL tokens during the lock-up period. The primary opportunities come from speculative gains on USUAL and the eventual redemption of USD0++ at its full $1 value after four years, providing a risk-free yield of 4% annually. Additional returns can come from staking USUALx to capture protocol revenue, though the complex structure requires careful navigation to optimize rewards.