Usual Money: Introducing a new decentralized stablecoin solution with RWA

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New Attempts at Decentralized Stablecoins for RWA: In-depth Analysis of Usual Money

The Current Status and Challenges of Stablecoins

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 this year, the total market capitalization of stablecoins reached $168 billion. However, the market landscape is highly concentrated, with two centralized stablecoins accounting for about 90% of the market share.

This centralization has brought enormous profits. In 2023, the two major stablecoin giants generated over $10 billion in revenue, with a valuation exceeding $200 billion. In the first quarter of this year, one of them even recorded a profit of $4.52 billion. Such massive profit monopolization is clearly at odds with the spirit of decentralization in cryptocurrency.

In response to this challenge, various decentralized stablecoin projects are emerging. Based on the collateralization method, they can be divided into three categories: over-collateralized, equal collateralized, and under-collateralized. Although there are some successful cases, the collateral of these projects is generally volatile crypto assets, requiring complex mechanisms to cope with price fluctuations.

Usual Money: Innovative Attempt of RWA stablecoin

Usual Money has proposed a new solution: introducing real-world assets (RWA) as collateral. The project selects U.S. Treasury bonds as collateral, while providing transparency and security based on Ethereum smart contracts, and returning profits to the community and contributors.

This design can be regarded as a "on-chain version of Tether", combining the 1:1 RWA characteristics of centralized stablecoin protocols with the security and transparency advantages of blockchain. It is worth noting that RWA is experiencing rapid growth in the blockchain field, with an increase of over 800% in 2023.

usual.money: RWA Decentralization stablecoin (with interactive tutorial)

Project Development History

  • In April 2024, Usual Labs completed a $7 million financing round, with participation from several well-known institutions.
  • On July 10th, the Usual mainnet launched.
  • As of early August, the total locked value ( TVL ) reached 146 million US dollars.
  • USD0 stablecoin has been launched on multiple trading platforms and lending protocols, providing diversified liquidity and yield opportunities.
  • The USUAL token is scheduled to be issued in the fourth quarter of this year, with 90% allocated to the community.

Core Mechanism Analysis

Collateral and Minting

USD0 provides two minting methods:

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

This design aims to address the issue of insufficient liquidity in RWAs, allowing retail investors to easily participate in RWA investments.

usual.money: RWA Decentralization stablecoin (including interactive tutorial)

Revenue Model

  • USD0++: The upgraded version of USD0.
  • USUAL: Governance and reward token of the protocol.

Users can earn returns by locking USD0, choosing either USUAL token returns or basic interest guarantees. The latter guarantees a return equivalent to at least the yield from the USD0 collateral.

User Participation Guide

  1. Access the Usual Money official application.
  2. Deposit USDC, USDT, or ETH to mint USD0.
  3. Participate in the "Pills" activity to earn rewards:
    • Lock USD0 for USD0++
    • Hold USD0++
    • Provide liquidity in the liquidity pool
    • Participate in tasks on Galxe

Through these methods, users can obtain the airdrop qualification for USUAL tokens.

usual.money: RWA Decentralization stablecoin (with interactive tutorial)

Conclusion

Usual Money is a new attempt at a RWA decentralized stablecoin, combining the stability of traditional financial assets with the transparency of blockchain technology. It offers an innovative approach to addressing the current centralization issues in the stablecoin market, making it worthy of industry attention. However, the long-term success of the project still requires market validation and widespread adoption by users.

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SelfCustodyBrovip
· 07-16 06:40
Complete decentralization is truly fragrant.
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GasGuzzlervip
· 07-16 06:36
Still the familiar taste, ah.
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LeverageAddictvip
· 07-16 06:34
Another gimmicky thing
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MemeEchoervip
· 07-16 06:27
usdo? Here we go again.
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