RWA Decentralization stablecoin: usual.money project analysis

Stablecoin Market Overview

Stablecoins serve as the infrastructure 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 USD. Among them, the two major stablecoins USDT and USDC account for about 90% of the market share.

The stablecoin business is highly profitable, with major stablecoin issuers generating over $10 billion in revenue in 2023. This concentration of profit has sparked a demand for Decentralization, leading to the emergence of various decentralized stablecoin projects. These projects are mainly divided into three categories: over-collateralized, equal-collateralized, and under-collateralized.

usual.money Project Introduction

The usual.money project introduces U.S. Treasury bonds as collateral, combined with Ethereum smart contracts to provide transparency and security. This design can be seen as an on-chain version of Tether, combining the traditional stablecoin's 1:1 physical asset collateral characteristics with the security and transparency advantages of blockchain.

Project Background

• In April 2024, Usual Labs completed a $7 million financing round, led by IOSG and Kraken Ventures.
• Founder Pierre Person served as a member of the French National Assembly and promoted the country's cryptocurrency legislation.
• On July 10, the Usual mainnet launched.
• As of early August, the total locked value (TVL) reached $146 million.
• USD0 main trading is concentrated in Curve's USD0/USDC pool, with liquidity of approximately 11.33 million USD.
• The Morpho platform has USD0 related vaults, with total collateral approaching 30 million dollars.
• The USUAL token is expected to be issued in the fourth quarter of 2024, with 90% allocated to the community.

Mechanism Analysis

Staking and Minting

USD0 can be minted in two ways:

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

Earning Model

• USD0++: The appreciation locking version of USD0.
• USUAL: Protocol governance and reward coin.

Users can lock USD0 as USD0++, choosing the following yield methods:

1. Receive USUAL token earnings daily.
2. Lock for 6 months to obtain a guarantee of at least equivalent to USD0 collateral yield.

User Participation

Pills event

• The pre-launch phase starts on July 10 and lasts for 4 months.
• The total amount of airdrop is 7.5% of the total supply of USUAL tokens.
• Users obtain airdrop eligibility through referrals and TVL contributions.

Participation method:

1. Mint USD0++: You can get 5 Pills each time.
2. Hold USD0++: Receive 3 Pills daily.
3. Provide USD0/USDC liquidity on Curve: earn 1 Pill per day.
4. Provide USD0 in the USD0/USD0++ pool: Earn 3 Pills daily, plus additional minting rewards of USD0++ within the pool.

At the same time, there is a time multiplier mechanism that increases by 2% daily, starting from 1.

Second Phase Activity

Launched on August 4th, users can earn Pills by completing tasks on the Galxe platform.

Through this innovative design, the usual.money project attempts to find a balance between Decentralization and stability, providing users with a transparent, secure, and potentially profitable stablecoin option.