Usual functions as a decentralized issuer of Fiat Stablecoins, redistributing ownership and governance through its native token, $USUAL.
The $USUAL token serves multiple purposes:
- Governance Control: It empowers token holders to oversee the protocol and influence significant financial decisions.
- Disinflationary Issuance: The issuance of $USUAL is linked to the Total Value Locked (TVL) of staked USD0 (USD0++), fostering scarcity as new TVL is introduced into the system.
- Revenue-Based Model: The issuance of $USUAL aligns with anticipated future cash flows, maintaining an inflation rate that is lower than the growth of revenue and treasury.
- Staking Rewards: Token holders can activate governance rights by staking $USUAL, earning 10% of newly issued tokens, which encourages long-term participation.
- Gauge Mechanism: This feature optimizes liquidity distribution within the protocol.
- Collateral Management: Governance decides on the types of collateral and their respective weightings behind USD0, ensuring both stability and flexibility.
- Treasury Management: The governance structure allows $USUAL holders to manage the treasury effectively and enhance compounding benefits.
The protocol comprises three tokens:
- USD0: A stablecoin fully backed by short-term, liquid, and risk-free assets, designed to avoid exposure to banks or counterparty risks while remaining composable, permissionless, and transparent within the DeFi ecosystem.
- USD0++: The liquid staking token for USD0, which distributes rewards in the form of $USUAL tokens.
- $USUAL: This token rewards the growth, adoption, and utilization of USD0 within the ecosystem, serving as a governance token that is supported by real cash flows.
