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Usual Event Analysis: The Deep Reasons Behind USD0++ Decoupling and Cycle Loan Get Liquidated
Usual Event Depth Analysis: USD0++ Decoupling and the Hidden Truth Behind the Loop Loan Get Liquidated
Recently, the USD0++ stablecoin issued by Usual has become the focus of the market due to its depeg, causing panic among many users. This article will systematically analyze the product logic, economic model of Usual, and the causal relationship of the recent depeg of USD0++ from the perspective of DeFi product design.
Analysis of Usual Product System
The Usual product system mainly includes 4 types of tokens:
First Layer: Stablecoin USD0
USD0 is a collateralized stablecoin, using RWA assets as collateral. Users can mint USD0 in two ways:
Second Layer: Bond Token USD0++
USD0++ is a tokenized four-year floating rate bond. Holders can receive:
USD0 can be staked 1:1 to mint USD0++, with a default lock-up period of 4 years.
Layer 3: Project tokens USUAL and USUALx
USUAL can be obtained by staking USD0++ or purchasing on the secondary market. USUAL can mint governance token USUALx at a 1:1 ratio.
Analysis of the Depegging Event
On January 10th, Usual officially announced the modification of the USD0++ redemption rules:
This move has triggered market panic, resulting in a significant drop in the price of USD0++.
Analysis of Motivations
Many users lend USDC in Morpho for USD0++, and then mint USD0++, forming a high-leverage circular loan. The floor price of 0.87 is just slightly higher than Morpho's liquidation line of 0.86, allowing for precise liquidation of these positions.
The USUAL-USUALx economic model has a risk of a death spiral. The new rules attempt to boost the USUAL price through mechanism design, but the effectiveness is questionable.
Exposing Issues
Despite the current market downturn, we should still maintain confidence in the Web3 industry. By continuously summarizing our experiences and lessons learned, truly meaningful projects will eventually emerge in the future.