USUAL MONEY

DESCRIPTION OF EVENTS

"Stablecoin infra for the un-tethered era. Usual is a secure and decentralized fiat-backed stablecoin issuer that redistributes ownership and value through the $USUAL token."

"Usual is a multi-chain infrastructure that aggregates the growing tokenized Real-World Assets (RWAs) from entities like BlackRock, Ondo, Mountain Protocol, M0 or Hashnote to transform them into a permissionless, on-chain verifiable, and composable stablecoin (USD0)."

"Usual is built around the redistribution of power and ownership to users & third parties, akin to a scenario where Tether’s TVL providers would own the company and the associated revenues."

"Each year, users give billions to fiat-backed stablecoin issuers. Usual reinvents this by providing a bankless account with a more transparent and secure stablecoin, while also offering better opportunities to its users."

"We rebuild Tether infrastructure 100% onchain." "Usual is a versatile multi-chain blockchain infrastructure. It aggregates the Real-World Assets from entities like BlackRock, Ondo, and Hashnote, transforming them into a safer, permissionless, verifiable, and composable stablecoin."

"USD0++, the staked version of USD0, is designed as a collateralized, dollar-pegged token fully backed by real-world assets like U.S. Treasury bills. However, it now imposes a four-year lock-up period, complicating immediate access for users."

"One minute, USD0++ was a « money printer go brrr », dollar-pegged paradise.

The next? A four-year lockup with a 13% exit fee if you wanted out early. Redeem now at 87 cents on the dollar, or wait until 2028 to get your whole dollar back.

Hundreds of millions in user funds found themselves trapped in protocols still trading fantasies at a dollar.

Usual Money didn't just move the goalposts - they changed the entire game while players were still on the field."

"The update led to significant volatility in the market, with liquidity providers on platforms such as Curve Finance and Pendle reportedly experiencing sudden shifts that resulted in hundreds of millions in USD0++ leaving the DeFi ecosystem. This exodus raised fears of multimillion-dollar liquidations."

"Throughout this past week, notable developments have emerged surrounding usual usd (USD0), its governance token USUAL, and USD0++. These events follow USD0’s ascent into the ranks of the top ten stablecoins by market capitalization. In a recent protocol update, the team modified the redemption pricing for USD0++. Previously, the token’s unstaking mechanism offered a 1:1 redemption ratio, but this changed with the latest adjustments.

This revision spurred debate, triggering subsequent market activity. On Jan. 9, USD0++ declined by over 8%, falling below the anticipated $1 mark."

"In response to community concerns, Usual’s decentralized autonomous organization (DAO) announced it would cover any potential bad debt in non-migrable markets up to the current amount."

"According to Coingecko data, its value dipped to $0.905 per coin, and as of Jan. 11, 2025, it stands at $0.939. Meanwhile, the non-staked USD0 has maintained its $1 peg but has seen its market capitalization recede from a Jan. 7 peak of $1.88 billion to $1.54 billion—a $340 million reduction."

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Usual Money pitches their stablecoin as an alternative to incumbents Tether and Circle, allowing holders to gain not just profits but also ownership in the protocol. The token was launched with a 1:1 backing peg. However, at some point in October or November 2024, it appears that the team decided to change this to a 0.87 backing, only intended to be invoked in emergencies. Users complained when this system was implemented in January 2025, and the stablecoin depegged and dropped rapidly. The situation is ongoing and continuing to develop. It is unclear whether the peg will be restored, and it seems that any affected users will retain their losses.

Rekt - Unusual Money (Jan 13)
@lemiscate Twitter (Jan 13)
@usualmoney Twitter (Jan 13)
@Togbe0x Twitter (Jan 14)

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