RWA Decentralization stablecoin: Taking usual.money as an example

Stablecoins are the cornerstone of the cryptocurrency industry, playing a key role in large-scale payments and industry adoption. By the end of July 2024, the total market capitalization of stablecoins reached $168 billion, with the two major stablecoins accounting for about 90% of the market share.

The stablecoin market is highly profitable, with major participants generating over $10 billion in revenue in 2023, and a valuation exceeding $200 billion. This concentration of profits contradicts the decentralization philosophy of cryptocurrency, prompting a continuous emergence of various decentralized stablecoin projects.

Decentralized stablecoins can be classified into three categories based on the collateralization method: over-collateralized, equal collateralized, and under-collateralized. However, these projects often use crypto assets as collateral, requiring complex mechanisms to handle price fluctuations. Introducing real-world assets (RWA) as collateral can effectively address this issue. In 2023, the growth of RWA on the blockchain exceeded 800%.

The usual.money project uses U.S. Treasury bonds as collateral, combined with Ethereum smart contracts to provide transparency and security, and returns profits to the community and contributors. This design combines the 1:1 RWA characteristics of traditional stablecoins with the security and transparency advantages of blockchain.

Project Background

In April 2024, Usual Labs completed a $7 million financing round with participation from several well-known investment institutions. Founder Pierre Person previously served as a member of the French National Assembly, promoting legislation on crypto assets in the country.

On July 10, the Usual mainnet launched. By early August, the total locked amount ( TVL ) reached $146 million. Its stablecoin USD0 is mainly traded in Curve's USD0/USDC pool, with liquidity exceeding $11 million. In addition, USD0 also has about $30 million in collateral on Morpho.

Usual plans to issue $USUAL coin in the fourth quarter of 2024, with 90% allocated to the community.

Core Mechanism

collateral and minting

USD0 can be minted in two ways:

1. Directly deposit eligible RWAs to receive USD0 at a 1:1 ratio.
2. Deposit USDC/USDT, with RWA collateral provided by a third party, to similarly obtain USD0 at a 1:1 ratio.

This design allows ordinary users to participate without directly dealing with RWA.

Earning Model

USD0++ is the locked version of USD0, and users can choose the following earning methods:

1. Earn USUAL coins as daily income.
2. Lock in a certain period (currently 6 months) to obtain a guarantee of at least equivalent to USD0 in collateral yield.

Regardless of how USD0++ is obtained, holders have the right to receive USUAL tokens.

User Participation

Usual has launched the "Pills" event, and users can earn rewards through the following methods:

1. Lock USD0 as USD0++.
2. Hold USD0++.
3. Provide liquidity in specific liquidity pools.

The event features a time multiplier to encourage long-term participation. In addition, Usual has launched the second phase of the event on the Galxe platform, where participants can earn extra rewards by completing tasks.

Overall, usual.money brings new possibilities to the decentralized stablecoin market by introducing RWA and innovative incentive mechanisms. As the project develops, it is expected to occupy an important position in the stablecoin market.