What is Usual (USUAL)?

Deep Dive

1. Purpose & Value Proposition

Usual Protocol aims to decentralize stablecoin issuance and redistribute the profits typically captured by centralized issuers. It addresses issues like opaque reserves and permissioned minting by creating a transparent, community-governed system. Its core value proposition is turning the yield from safe, real-world assets (RWAs) into a sustainable revenue stream for token holders, aligning long-term user and protocol incentives.

2. The Stablecoin System

The protocol's primary products are its stablecoins, USD0 and EUR0. According to a guide from Bitrue, each token is fully collateralized 1:1 by tokenized short-term government securities, such as U.S. Treasuries. This structure aims to provide stability and transparency. Users can mint these stablecoins permissionlessly by depositing approved collateral. The system also includes products like Usual Savings, which lets users earn yield on their stablecoins through on-chain tokens like $sUSD0.

3. Tokenomics & Governance

The USUAL token is central to protocol governance and value accrual. The team states that 90% of the token supply is allocated to the community. A unique feature is its revenue-based tokenomics: emissions are tied to actual protocol revenue and Total Value Locked (TVL). The protocol commits up to 70% of its revenue to buy back USUAL from the open market, and the remaining 30% is paid weekly to users who lock their tokens (USUALx), creating a direct yield-sharing mechanism.

Conclusion

Fundamentally, Usual is a community-owned DeFi protocol that merges the safety of real-world asset backing with a transparent model for sharing revenue with its participants. How will its focus on regulatory-friendly assets influence its adoption compared to algorithmic stablecoins?