RWA Decentralization stablecoin: usual.money analysis

Stablecoins are the cornerstone of the cryptocurrency industry, playing a key role in large-scale payments and widespread adoption across the industry. As of the end of July 2024, the total market value of stablecoins reached $168 billion, with two major centralized stablecoins accounting for approximately 90% of the market share.

The stablecoin market is highly profitable, with major participants generating over $10 billion in revenue in 2023. This profit monopoly runs counter to the spirit of Decentralization, thus giving rise to various decentralized stablecoin projects. These projects are mainly divided into three categories: over-collateralized, equally-collateralized, and under-collateralized.

However, most decentralized stablecoin projects still rely on crypto assets as collateral, requiring complex mechanisms to address price volatility. Introducing Real-World Assets (RWA) can effectively solve this problem. In 2023, RWA on the blockchain grew by over 800%, demonstrating tremendous potential.

The usual.money project uses U.S. Treasury bonds as collateral, combined with Ethereum smart contracts to provide transparency and security, and returns profits to the community and contributors. This design combines the 1:1 RWA characteristics of centralized stablecoins with the security and transparency advantages of on-chain.

Project Background

In April 2024, Usual Labs completed a $7 million financing round, led by a well-known investment institution. Founder Pierre Person was a French politician with extensive experience in promoting cryptocurrency legislation.

On July 10, the Usual mainnet was launched. By early August, the total value locked (TVL) of the project reached 146 million USD. Its stablecoin USD0 is mainly traded in the Curve USD0/USDC pool, with liquidity exceeding 11 million USD.

USD0 still has a dedicated vault on the lending platform Morpho, offering a liquidation loan-to-value ratio of up to 86%, with total collateral approaching 30 million USD. Users participating in these pools can simultaneously earn Usual's Pills rewards and Morpho token rewards.

The project token $USUAL is expected to conduct a Token Generation Event (TGE) in the fourth quarter of 2024, with 90% allocated to the community.

Core Mechanism

Collateral and Minting

USD0 can be minted in two ways:

1. Direct RWA deposits: Users deposit qualified RWA at a 1:1 ratio to receive USD0.
2. Indirect USDC/USDT deposits: Users deposit USDC/USDT, and receive USD0 at a 1:1 ratio with RWA collateral provided by a third party.

This design addresses the liquidity challenges faced by RWA in the crypto market, allowing retail investors to also gain RWA returns.

Income Model

USD0++ is the value-added locked version of USD0. Users can lock USD0 in the USD0 Liquid Bond to earn returns, choosing one of the following two methods:

1. USUAL token rewards: Daily USUAL tokens can be claimed.
2. Basic interest protection: After locking for 6 months, you can obtain a return equivalent to at least USD0 collateral earnings, and you can choose either USUAL tokens or USD0 form.

Regardless of how USD0++ is obtained, holders have the right to receive USUAL tokens.

User Participation

Pills Activity Overview

• The pre-launch phase starts on July 10 and lasts for 4 months.
• Airdrop 7.5% of the total supply of USUAL
• Obtain airdrop eligibility through referrals and TVL contributions
• Adopt a linear allocation mechanism

Participation Steps

1. Access the Usual Money dApp using the early access code ZHWQS
2. Deposit USDC, USDT, or ETH to mint USD0
3. Ways to earn Pills:
   • Mint USD0++: Earn 5 coins each time
   • Hold USD0++: Earn 3 coins daily
   • Provide liquidity in Curve's USD0/USDC pool: earn 1 coin daily
   • Provide USD0 in the USD0/USD0++ pool: earn 3 coins daily, and earn an additional 5 coins for each minted USD0++.
4. Add liquidity to earn Pills: Select the USD0/USD0++ option and enter the amount of USD0.

Pills Activity Phase 2

Launched on August 4th, earn Pills by completing tasks on Galxe.

By participating in various activities of usual.money, users can earn profits in the decentralized stablecoin ecosystem while contributing to the development of the project.