The currency price ranges from 0.2 to 1.3. What are the advantages of in-depth interpretation of Usual?

From November 11 to 19, Usual’s governance token $USUAL achieved an astonishing increase from $0.2 to $1.3, an increase of more than 500% in just nine days.

Tether and Circle earned more than $10 billion in 2023, with valuations exceeding $200 billion, but this wealth has nothing to do with users—their model is to privatize profits from user deposits while passing risks to society. Such a mechanism is exactly the same as the problems of the traditional banking industry and completely deviates from the original intention of decentralized finance.

Usual provides a brand-new stablecoin idea: redistributing value and power, allowing users to truly become the masters of the system. Through governance tokens, Usual returns all the revenue and decision-making rights generated by the protocol to the community, allowing every participant to share the dividends of ecological growth.

In a market dominated by centralized giants, Usual attempts to break the status quo and create a fairer and more transparent financial system for users through DeFi.

What is Usual?

USUALLY is a fiat stablecoin issuer. Unlike Tether and Circle, it is a decentralized issuer rather than a highly centralized one . The $USUAL that has been in the hot circles recently is issued by them to redistribute ownership and governance. of tokens.

USUALLY first appeared on the scene at the beginning of this year. In April, it completed a US$7 million financing led by IOSG Ventures; in June, it released its own protocol, Usual Protocol; in July, Usual was launched on the mainnet; 11 On December 19, the $USUAL token was officially launched. On December 23, Usual completed another $10 million in Series A financing.

Why choose decentralization?

Now, the size of the stablecoin market has exceeded US$100 billion, but its value is mainly concentrated in the hands of centralized giants such as Tether and Circle, making it almost impossible for ordinary users to benefit from it. This centralized model not only deprives users of their right to income, but also limits the development of stablecoins to the control of a few institutions.

Usual proposes a brand-new solution to address this market pain point: empowering users through decentralization and allowing them to become core participants in the protocol infrastructure, funds, and governance, thereby breaking the monopoly of traditional stablecoins.

Usual's governance token $USUAL achieves 100% redistribution of value and control, ensuring that community users have the right to dominate. By allocating governance tokens, the protocol returns benefits to users and third parties who contribute value, which not only optimizes the financial incentive mechanism, but also gives ecosystem participants more power and voice. Compared with the traditional model, Usual's decentralized design makes the protocol more dynamic and inclusive by rewarding early contributors and coordinating the interests of all stakeholders.

Stablecoin issuers currently on the market can be roughly divided into three categories:

• Traditional model : Tether, for example, distributes all income to its shareholders. Users can only obtain a DeFi-compatible stablecoin, but cannot enjoy the dividends of income or protocol growth.
• Income-based stablecoins : issued by institutions such as Ondo or Mountain, allowing users to share basic income through a licensing mechanism. However, users can only gain revenue but cannot benefit from protocol growth. For example, no matter whether USDM's TVL is US$100 million or US$100 billion, the user's income is always fixed at 5%.
• Usual model : Usual combines revenue and growth into one. By redistributing value through the $USUAL governance token, users not only receive stablecoin earnings, but also ownership and growth potential of the protocol.

Usual's decentralized concept injects fresh ideas into the stablecoin market, making it unique in the stablecoin market.

USUAL’s three core products

Usual's core products include: USD0, USD0++ and USUAL governance tokens. These three together form Usual's core ecosystem.

USD0

USD0 is the first Liquid Deposit Token (LDT) launched by Usual Protocol. It is backed 1:1 by real world assets (RWA) such as US Treasury Bills, ensuring its extremely high stability and security. USD0 is not only a stablecoin pegged to the US dollar, but also a permissionless, composable asset that can be seamlessly integrated into the DeFi ecosystem. Through USD0, Usual enables users to make payments, transactions, and mortgage operations more securely, while ensuring security that is unrelated to traditional bank deposits.

USD0++

USD0++ is a pledged version of USD0 and can also be regarded as a Liquidity Deposit Token (LST). Users can stake USD0++ as a 4-year bond in exchange for $USUAL tokens as income rewards. USD0++ maintains the stability of USD0, and at the same time enables users to obtain the benefits of the protocol through a decentralized revenue distribution mechanism. In addition, USD0++ also has high liquidity and composability, and can be widely used in DeFi protocols, providing holders with higher income potential.

USUAL Governance Token

The USUAL governance token is the core of the entire Usual Protocol, which gives its holders decision-making and governance rights in the protocol. USUAL tokens enable users to not only participate in the management of the protocol through a decentralized governance mechanism, but also to obtain actual benefits from the growth and revenue of the protocol. 90% of USUAL tokens will be allocated to the community, with only 10% reserved for the protocol team and investors. This ensures the dominance of the community and encourages more users to participate in the construction and development of the protocol.

Through these three core products, Usual not only provides stability and income, but also ensures users' control and value distribution in the protocol through a decentralized mechanism.

USUAL Token Economics

Many governance tokens on the market now have design problems. The models of most tokens are basically copied and fail to effectively balance the interests of short-term speculators and long-term investors. As a result, token prices are easily affected by speculation, causing selling pressure. At the same time, there is no close connection between the value, governance and income potential of these tokens. They rely more on market popularity to push up prices, instead neglecting to create actual value for users. Founders and teams usually hold large amounts of tokens, while the value of ordinary users’ holdings is constantly eroded by inflation, eventually leading to token devaluation.

Unlike these traditional tokens, Usual ensures that the interests of users, contributors and investors can be combined in the long term through a unique token economic model to achieve sustainable value growth and real utility. This design avoids short-term hype and focuses on stability and long-term value creation, truly benefiting every participant.

The USUAL token is the core of the Usual Protocol ecosystem and is mainly used for governance while also providing economic benefits to holders. The value of a token is derived from the economic rights it represents and the actual benefits derived from stablecoin collateral. Simply put, when the protocol generates revenue, the value of USUAL will grow so that holders can share in the growth of the protocol.

In terms of token distribution, in order to avoid excessive dilution, Usual allocates 90% of USUAL tokens to users who contribute value and income to the protocol mainly through the total value lock (TVL) of USD0. The total token holdings of the team, investors and advisors will not exceed 10% of the total supply. This distribution method ensures that users’ interests will not be diluted due to over-issuance.

USUAL’s issuance mechanism is directly linked to the cash flow generated by stablecoin collateral. Whenever a user stakes USD0, the protocol mints new USUAL tokens. As protocol revenue increases, the token supply will also increase. This design ensures that the issuance rate of tokens will not exceed the economic growth rate of the protocol and avoids excessive inflation.

Usual's token issuance is a deflationary model, with the issuance rate carefully calibrated to stay below the rate of protocol revenue growth. This means that as the protocol develops, USUAL tokens will become increasingly scarce, ensuring the long-term stability of the token’s value.

In addition, USUAL holders will also participate in the decision-making of the financial management of the agreement and decide how to use the income of the agreement, such as by destroying tokens or distributing income. In this way, holders can not only govern the protocol, but also influence the financial strategy and long-term development of the protocol.

Finally, USUAL holders can also earn rewards for staking their tokens. When you stake USUAL tokens, they are converted to USUAL+, and users holding USUAL+ can receive up to 10% of newly minted USUAL tokens, with the exact ratio determined by the issuance rules. This not only provides additional revenue, but also encourages users to participate in the construction and ecological development of the protocol for the long term.

Participate in the USUAL project and earn money with no risk?

The emergence of USUAL can't help but remind people of The DAO and Luna, which were initially promising projects in the entire currency circle, but eventually collapsed in an instant due to contract loopholes or token economics. Although USUAL seems to have great potential, adopting innovative token economics and powerful security protection mechanisms, after all, the blockchain project itself has certain risks. No matter how carefully designed, the possibility of loopholes and attacks cannot be completely ruled out. .

USUAL Security Audit

USUAL currently has 5 security audits. The audited organization is Cantina. Its audit work mainly includes:

Permission to start smart contract audit, no permission required to start smart contract audit, L2 token contract, OFT MintAndBurnAdapter and L1 OFT Adapter, USD0++ and DAO collateral contract, SwapperEngine and USUAL token contract, USUAL distribution and airdrop contract, Blackthorne audit, etc.

Although the security audit has been sufficient, the private key storage and other methods have not been disclosed. After all, there are precedents of DEXX and Radiant, so it does not mean that USUAL is necessarily safe.

Are there flaws in USUAL security monitoring?

The monitoring framework given in the USUAL official document is already very complete, but there are still some minor problems:

Limitations of monitoring coverage:

The current monitoring framework mainly focuses on the monitoring of key operations within the protocol, but there may not be enough real-time monitoring of external interfaces, third-party integrations, or interactions with other chains (such as cross-chain operations). If there are vulnerabilities in the interaction between the protocol and external systems or are exploited by attackers, existing monitoring may not be able to detect the problem in time.

Threshold settings:

In a threshold alert system, abnormal trading volume, large token movements, or price fluctuations may trigger alerts. However, market volatility and certain special events (such as large trades or market corrections) may be mistaken for abnormal behavior. If the threshold setting is not intelligent enough or does not adapt to market changes, excessive alarms or false negatives may occur, resulting in an inability to respond in a timely manner or misleading results.

Potential risks of multi-signature:

As in the example of the Radiant hack, although the activity of multi-signature wallets is monitored in real time, multi-signature itself may present risks of improper management. If members involved in signing make mistakes, are hacked, or act maliciously, the monitoring system may not be able to detect abnormal authorization operations in advance.

at last

The USUAL protocol has done a great job of innovating, adopting a token issuance model tied to real revenue, ensuring long-term value growth. In addition, its security mechanism is also very powerful, such as an automatic "circuit breaker" that can immediately suspend operations when a risk is detected to protect user assets. However, there are also some potential risks, such as the automatic defense mechanism may misjudge or miss the report. In addition, the security of multi-signature and external interfaces also requires continuous attention.

Overall, USUAL's design provides a promising solution in solving the speculation problem of blockchain protocols and improving security.