RWA Decentralization stablecoin: usual.money's innovative attempt

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 2024, the total market capitalization of stablecoins reached $168 billion, with the two major centralized stablecoins, USDT and USDC, accounting for about 90% of the market share.

The stablecoin business is highly profitable, with the two giants Tether and Circle generating over $10 billion in revenue combined in 2023, and a valuation exceeding $200 billion. Tether recorded a historic profit of $4.52 billion in the first quarter of 2024. This enormous profit is concentrated in the hands of a few centralized institutions, which contradicts the spirit of Decentralization in cryptocurrency, thus giving rise to numerous decentralized stablecoin projects.

Decentralized stablecoins can be classified based on their collateralization methods into over-collateralized (such as MakerDAO's DAI), fully collateralized (such as Ethena's USDe), and under-collateralized (which currently has no large-scale applications). However, these projects generally use crypto assets as collateral, requiring complex mechanisms to address coin price fluctuations.

Introducing real-world assets (RWA) as collateral can effectively solve this problem. The application of RWA on the blockchain is rapidly growing, with an increase of over 800% in 2023. usual.money innovatively chooses U.S. Treasury bills as collateral while leveraging Ethereum smart contracts to ensure transparency and security, returning the profits to the community and contributors. This design can be considered an on-chain version of Tether, combining the 1:1 RWA characteristics of centralized stablecoins with the security and transparency advantages of blockchain.

The background of the usual.money project is significant. In April 2024, Usual Labs completed a $7 million financing round, with investors including well-known institutions such as IOSG and Kraken Ventures. The founder, Pierre Person, previously served as a member of the French National Assembly and vice-president of the presidential party, making notable contributions to the promotion of cryptocurrency legislation in France. The project launched its mainnet on July 10, and by early August, the total value locked (TVL) had reached $146 million.

USD0 is the first RWA stablecoin that aggregates various U.S. Treasury bond tokens, allowing users to mint USD0 by directly depositing RWA or indirectly depositing USDC/USDT. USD0++ is the locked appreciation version of USD0, where holders can choose to receive USUAL token rewards or basic interest protection.

To attract user participation, usual.money launched the "Pills" campaign. Users can obtain Pills by minting USD0++, holding USD0++, and providing liquidity in the liquidity pool. The campaign features a time multiplier to encourage long-term participation. Additionally, the project has launched the second phase of mission activities on the Galxe platform to further expand community involvement.

The innovative design and proactive community incentive strategies of usual.money bring new possibilities to the field of Decentralization stablecoin. With the further integration of RWA into the cryptocurrency market, such stablecoin projects that combine traditional financial assets and blockchain technology may play a greater role in the future.