Usual: USD0 always maintains a redeemable 1:1 Collateral and strong secondary Liquidity

BlockBeats News, on January 1st, Usual official statement stated that yesterday (December 31st, 07:00 UTC), Usual protocol experienced a large-scale dumping of USD0 caused by a single Whale transaction on the Secondary Market, triggering users’ suspicion of the pegging between USD0 and the US dollar. USD0 briefly fell to $0.99, and there was some basis point deviation due to continuous dumping, but it quickly returned to full pegging. All USD Stable Coins in the market will experience price fluctuations of a few basis points around $1, which is a normal phenomenon brought by the mechanism of USD Stable Coins. USD0 can always be redeemed in a 1:1 ratio with its underlying Collateral to ensure the solvency of the Usual protocol. The redemption is processed through Smart Contracts, and currently, any entity on the Allowlist can access it. Our ultimate goal is to make it fully permissionless. USD0 also has strong secondary Liquidity, and the secondary Liquidity of Collateral depends on tokenized RWA issuers such as USYC, USDTB by Ethena, BUIDL Fund by BlackRock’s Securitize, OUSG by Ondo, etc., to ensure multiple exit routes and optimal Liquidity. This event is a significant stress test for the pegging of USD0 to the US dollar, and Usual remains strong and will always follow the stability of the system.