RWA Decentralization stablecoin: usual.money analysis and its innovative mechanism

Stablecoins serve as the cornerstone of the cryptocurrency industry, playing a key role in large-scale payments and industry adoption. As of the end of July 2024, the total market capitalization of stablecoins reached $168 billion, with USDT and USDC accounting for about 90% of the share. This trend of centralization contradicts the principle of Decentralization in cryptocurrencies, which has led to the emergence of numerous decentralized stablecoin projects.

usual.money, as an emerging decentralized stablecoin project, innovatively introduces U.S. Treasury bonds as collateral. This design combines the 1:1 physical asset backing characteristic of centralized stablecoins with the transparency and security brought by blockchain technology, making it a blockchain version of Tether. The project also distributes profits to the community and contributors, further embodying the spirit of decentralization.

Project Background

usual.money was founded by former French politician Pierre Person. The project completed a $7 million funding round in April 2024, with investors including well-known institutions such as IOSG and Kraken Ventures. On July 10th, Usual announced the launch of its mainnet, and by early August, the total value locked (TVL) of the project had reached $146 million.

Currently, Usual's stablecoin USD0 is primarily traded in Curve's USD0/USDC pool, with liquidity of approximately $11.33 million. In addition, there is a USD0-related treasury orchestrated by MEV Capital on Morpho, with a total collateral of nearly $30 million.

Mechanism Analysis

Collateral and Minting

USD0 can be minted in two ways:

1. Directly deposit eligible RWA to receive USD0 at a 1:1 ratio.
2. Deposit USDC/USDT to indirectly obtain USD0 through third-party collateral providers.

This design allows users to participate without directly handling RWA, lowering the entry barrier.

revenue model

USD0++ is the locked version of USD0, allowing users to choose to earn returns in the form of USUAL tokens or enjoy basic interest protection. Regardless of how USD0++ is obtained, holders have the right to receive USUAL token rewards.

Community Incentives

Usual designed an event called "Pills" to encourage user participation:

1. Minting USD0++ will earn you 5 Pills.
2. Holding USD0++ can earn 3 Pills daily.
3. Providing liquidity in Curve's USD0/USDC pool can earn 1 Pill per day.
4. Providing USD0 in the USD0/USD0++ pool will earn additional rewards.

In addition, there is a time multiplier mechanism to encourage users to participate in the long term.

Future Outlook

Usual plans to conduct a token generation event (TGE) in the fourth quarter of 2024, with 90% of the USUAL tokens allocated to the community. This initiative is expected to further promote the project's Decentralization process and community engagement.

Overall, usual.money brings new possibilities to the decentralized stablecoin space by introducing RWA as collateral, combined with smart contract technology. Its innovative mechanisms and community incentive strategies are worth the industry's attention, but it is also necessary to closely monitor the project's long-term development and risk management capabilities.