Background

Usual Protocol is a multi-chain DeFi protocol that aggregates the tokenized RWA from entities like BlackRock, Ondo, Mountain Protocol, M0 or Hashnote. It transforms these RWAs (mainly on-chain US Treasury Bills) into a composable stablecoin ($USD0).

USD0 is currently the 7th largest stablecoin by market cap at $1.2Bn, down from its peak at $1.8Bn a couple weeks ago. It is a new stablecoin but already proving itself to be a market leader.

Let’s explore how it works.

Tokens

The system works thanks to the integration of three tokens:

1. $USD0

   • A stablecoin with 1:1 peg to USD

   • Backed by RWAs like U.S. Treasury Bills

   • Designed to achieve stability, transparency, and independence from the traditional banking system

   • Used for payments, trading, and use as collateral

   
   

2. USD0++

   • Staking token that acts as a vehicle for the distribution of yield

   • Offers holders an enhanced T-Bill equivalent, or a savings account for RWAs

   • Rewards are paid out in $USUAL tokens

     
     

3. $USUAL token

   • Governance token

   • Backed by real yield and revenue

   • Grants ownership rights over the protocol’s actual revenues, future revenues, and infrastructure

     • $USUAL needs to be staked to get $USUALx which is the token that actually unlocks governance rights (collateral management and liquidity strategies) and compounding rewards

Flow

• Users deposit USDC to the protocol

• USD0 stablecoin is minted, users can redeem it 1:1 for USDC via secondary and primary markets

• Users can stake USD0 to unlock USD0++, which locks the funds temporarily and earns yieldUSD0++ holders benefit from higher yields via $USUAL rewardsWhen unstaking, USD0++ is burned and the user receives USD0

• The protocol aggregates all liquidity and invests it in on-chain T Bills

• Stakers are granted $USUAL distribution by participating in the ecosystem (staking, providing liquidity)

• $USUAL has deflationary issuance, meaning that it is only issued whenever the protocol has 100% certainty of future cash flows

In this way, Usual aims to ensure that the inflation rate is always lower than the increase in revenue and treasury holdings

Usual Treasury

• 100% of the protocol’s revenue goes to the treasury

• The Treasury is controlled through governance

• Governance participants control the, its investments, and future re-distributions90% of the revenue is distributed to the stakeholders who support operations (stakers, liquidity providers, and ecosystem members) and the other 10% is distributed to $USUAL token holders

Usual Treasury

• 100% of the protocol’s revenue goes to the treasury

• The Treasury is controlled through governance

• Governance participants control the, its investments, and future re-distributions

• 90% of the revenue is distributed to the stakeholders who support operations (stakers, liquidity providers, and ecosystem members) and the other 10% is distributed to $USUAL token holders