What Is Usual Protocol?
Usual Protocol is a Web3 project focused on one big idea: making real-world assets, often called RWAs, more accessible and fair inside decentralized finance. Instead of letting stablecoin issuers keep most of the upside, Usual is built to share value with its users while offering more transparency around how assets are managed.
At its core, Usual combines a stablecoin backed by real assets with a governance system that gives users a voice. The goal is to bridge traditional finance and DeFi without repeating the same old problems that dominate today’s stablecoin market.
Why Usual Protocol Was Created
Stablecoins are essential to crypto. They reduce volatility, make trading easier, and act as a bridge between traditional money and on-chain systems. But the current model has clear flaws.
Large issuers generate billions in revenue, while users see little benefit. Access to yield-bearing real-world assets is often limited to institutions or a small group of approved players. On top of that, transparency around collateral and risk management can be hard to verify in real time.
Usual Protocol was designed to challenge that structure. It aims to redistribute economic value, improve visibility into reserves, and open access to RWAs in a more inclusive way.
USD0: The Stablecoin at the Center
USD0 is the main entry point into the Usual ecosystem. It’s a stablecoin designed to be minted without permission, using approved collateral.
That collateral is made up of low-risk, fully backed real-world assets, such as U.S. Treasury bills. The protocol enforces strict standards: no leverage, high liquidity, and regular audits. Users can verify collateral details both on-chain and through off-chain disclosures.
Minting and redeeming USD0 works in two ways. Users who hold eligible assets can mint directly. For those who can’t, the Usual DAO can step in to facilitate minting and distribute USD0 back to them. An insurance fund adds an extra layer of protection against potential losses.
USD0++: Locking for Long-Term Rewards
USD0++ is a liquid staking token that represents USD0 locked until June 30, 2028. Locking USD0 allows users to earn USUAL tokens over time, while USD0++ itself remains tradable on secondary markets.
There are limited early exit options. Users can burn USUAL tokens to redeem USD0++ at a 1:1 ratio, redeem at a DAO-defined discounted floor price, or rely on a special mechanism called the Parity Arbitrage Right. In extreme conditions, the DAO may unlock USD0 early to prevent USD0++ from drifting too far off its peg.
USUAL: Governance and Incentives
USUAL is the protocol’s governance token and reward engine. Unlike many tokens that inflate regardless of performance, USUAL is minted based on protocol revenue. That design ties token issuance directly to real economic activity.
Holders can stake USUAL to earn more tokens and participate in governance. Votes cover topics like which assets qualify as collateral, how treasury funds are used, and how incentives are structured. The minting rate adjusts dynamically based on factors such as locked USD0++ supply and interest rate changes.
Governance, Liquidity, and the Road Ahead
Usual Protocol launched with oversight from Usual Labs to ensure stability early on. Over time, control will transition to the Usual DAO, where USUAL holders and early contributors guide the protocol’s direction.
Liquidity providers are also rewarded. Users who supply USD0 or USUAL to approved liquidity pools can earn additional USUAL incentives, helping keep markets efficient.
