A New Attempt at RWA Decentralization Stablecoin: usual.money

Stablecoins, as the cornerstone of the cryptocurrency industry, play a key role in large-scale payments and industry adoption. As of the end of July 2024, the total market value of stablecoins has reached 168 billion USD, with the two major centralized stablecoins, USDT and USDC, accounting for about 90% of the market share.

The high centralization of the stablecoin market has led to a demand for Decentralization alternatives. Various decentralized stablecoin projects are emerging, including different models such as over-collateralization, equal collateralization, and under-collateralization. However, most of these projects rely on crypto assets as collateral, requiring complex mechanisms to cope with coin price fluctuations.

Introducing real-world assets ( RWA ) as collateral has become a new development direction. In 2023, the growth of RWA on the blockchain exceeded 800%. Against this backdrop, usual.money was born, choosing U.S. Treasury bonds as collateral, combining Ethereum smart contracts to provide transparency and security, while returning profits to the community and contributors. This design can be seen as an on-chain version of Tether, possessing the 1:1 RWA characteristics of centralized stablecoins and the security and transparency advantages of blockchain.

Project Background

usual.money is developed by Usual Labs, which completed a $7 million financing round in April 2024. The founder, Pierre Person, was a member of the French National Assembly and played an important role in promoting cryptocurrency asset legislation in the country.

The project launched its mainnet on July 10, 2024. As of early August, the total locked value (TVL) has reached $146 million. Its stablecoin USD0 is mainly traded in the Curve USD0/USDC pool, with liquidity exceeding $11 million. In addition, USD0 also has a high collateral rate on lending platforms such as Morpho.

Core Mechanism

USD0 is the first RWA stablecoin that aggregates various U.S. Treasury bond tokens, allowing users to mint through two methods:

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

USD0++ is an enhanced version of USD0, allowing users to lock USD0 to earn returns. Returns can be chosen in USUAL tokens or basic interest guarantees. USUAL is the governance and reward token of the protocol, with a token generation event planned for Q4 2024, (TGE).

User Participation

The project is currently conducting the Pills event, where users can earn rewards through the following methods:

1. Mint USD0++
2. Hold USD0++
3. Provide liquidity in the USD0/USDC pool on Curve
4. Provide USD0 in the USD0/USD0++ pool

The event features a time multiplier to encourage users to participate long-term. In addition, the project has launched the second phase of the task event on the Galxe platform to further enhance user engagement.

The emergence of usual.money has brought new possibilities to the decentralized stablecoin market. By combining RWA and blockchain technology, the project aims to provide a stablecoin solution that is both secure and transparent, as well as stable and reliable. As the demand for stability and decentralization in the cryptocurrency industry continues to grow, innovative projects like usual.money are likely to play an important role in the future financial ecosystem.