Introduction
The world of decentralized finance continues to evolve with innovative projects that challenge traditional financial models. Binance, a leading cryptocurrency exchange, has introduced its 61st Launchpool project: Usual (USUAL). This project represents a decentralized issuer of fiat-backed stablecoins, aiming to transform how value and control are distributed within the crypto ecosystem.
At its core, Usual seeks to create a transparent, secure, and community-owned stablecoin infrastructure. Unlike traditional models where profits are centralized, Usual redistributes ownership and governance to its users through its native token, USUAL. This guide explores the key features, tokenomics, and vision of Usual, providing a clear understanding of its potential impact on DeFi.
Launchpool Details
Binance Launchpool offers users the opportunity to stake specific cryptocurrencies and earn rewards in new tokens. For the Usual project, the staking period lasts for four days, starting from November 15, 2024, at 08:00 (UTC+8). Participants can stake BNB or FDUSD in dedicated pools to receive USUAL tokens.
Key details include:
- Token Name: Usual (USUAL)
- Total Token Supply: 4,000,000,000 USUAL
- Initial Circulating Supply: 494,600,000 USUAL (12.37% of total supply)
- Launchpool Rewards: 300,000,000 USUAL (7.5% of total supply)
- Smart Contract: Deployed on the Ethereum network (0x430a2712cEFaaC8cb66E9cb29fF267CFcfA38a42)
The distribution of rewards is weighted, with 85% allocated to the BNB pool and 15% to the FDUSD pool. This allows a broad range of participants to engage with the project from its early stages.
What Is Usual (USUAL)?
Usual is a decentralized platform that issues fiat-backed stablecoins with a focus on transparency and community governance. It aggregates tokenized real-world assets (RWA) from established entities like BlackRock, Ondo, and Mountain Protocol, converting them into permissionless, verifiable, and composable stablecoins known as USD0.
The project is built on the principle of redistributing power and ownership to users and third parties. This approach contrasts with traditional models, where centralized entities retain control and profits. By leveraging blockchain technology, Usual ensures that its stablecoin infrastructure is neutral, secure, and aligned with the ideals of decentralized finance.
Why Usual Stands Out
Usual addresses several critical issues in the current financial and crypto landscapes:
- Profit Sharing: Established stablecoin issuers like Tether and Circle generated over $10 billion in revenue in 2023, with valuations exceeding $200 billion. However, users who contributed to their success did not share in these profits. Usual aims to redistribute value back to the community.
- RWA Integration Challenges: Real-world assets are growing in prominence, but their integration with DeFi remains limited. With fewer than 5,000 on-chain RWA holders, there is a significant opportunity for improved accessibility and usability. Usual bridges this gap by making RWA-backed stablecoins more composable within DeFi.
- Incentive Models: Current yield distribution models often fail to reward early adopters adequately. Usual introduces a system where users are incentivized through governance tokens, providing them with control over protocol decisions and future revenues.
These insights drive Usual's mission to create a more equitable financial system where users are true stakeholders.
The Vision of Usual
Rebuilding Tether On-Chain: Neutrality and Transparency
Usual aims to recreate a fully on-chain, fiat-backed stablecoin supported by infrastructure that ensures neutrality, transparency, and security. In this model, governance token holders control the issuer, including decisions on risk policies, collateral types, and liquidity incentives. This decentralized governance framework reduces reliance on centralized entities and enhances trust.
Reducing Bankruptcy Risks
Traditional fiat-backed stablecoins are partially secured by reserves held in commercial banks, making them vulnerable to fractional reserve practices and bank failures. The recent collapse of Silicon Valley Bank highlighted the systemic risks that undercollateralized banks pose to DeFi.
Usual mitigates these risks by backing its stablecoins with short-term bonds instead of traditional bank deposits. This approach, combined with stringent risk policies and an insurance fund, provides users with greater capital security.
Ending Profit Privatization
By redistributing 100% of the value and control through its governance token, Usual ensures that users become owners of the protocol infrastructure, funds, and governance. This model contrasts with traditional banking structures, where profits are privatized and losses socialized. Usual's community-centric approach aligns with the principles of decentralized finance, creating a fairer system for all participants.
Revolutionizing Ownership and Yield Redistribution
Usual consolidates yields generated from stablecoin collateral into a protocol fund. In return, users receive governance tokens, which grant control over the protocol and future revenues. This mechanism not only redistributes income but also ownership of the system itself, offering significant upside potential for early adopters.
The transparent and public distribution of governance tokens ensures that all participants' interests are aligned, fostering a collaborative and sustainable ecosystem.
Tokenomics and Distribution
Usual's tokenomics are designed to support long-term growth and community engagement. With a total supply of 4 billion USUAL tokens, the initial circulating supply is 494.6 million (12.37%). The Launchpool rewards account for 300 million tokens (7.5%), distributed to stakers of BNB and FDUSD.
The smart contract is deployed on the Ethereum network, ensuring compatibility with a wide range of wallets and DeFi applications. This strategic distribution encourages widespread participation and aligns with Usual's goal of decentralized ownership.
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Frequently Asked Questions
What is the main goal of Usual?
Usual aims to create a decentralized, transparent, and community-owned stablecoin issuer. By redistributing ownership and governance through its token, it challenges traditional models where profits are centralized.
How can I participate in the Usual Launchpool?
You can stake BNB or FDUSD in the designated pools on Binance Launchpool during the four-day staking period. Rewards are distributed in USUAL tokens based on your staked amount and duration.
What makes Usual different from other stablecoins?
Unlike centralized stablecoins, Usual backs its assets with short-term bonds instead of bank deposits, reducing bankruptcy risks. It also redistributes 100% of value and control to token holders, ensuring community governance.
Is Usual available on multiple blockchains?
Initially, Usual is deployed on the Ethereum network. However, its multi-chain infrastructure may support additional networks in the future to enhance accessibility and interoperability.
What are the risks of participating in Launchpool?
As with any crypto investment, staking in Launchpool involves market volatility and smart contract risks. Always conduct thorough research and consider your risk tolerance before participating.
How does Usual ensure transparency?
Usual uses on-chain verification for its collateral and governance processes. Token holders can participate in decisions regarding risk policies and revenue distribution, ensuring open and transparent operations.
Conclusion
Usual represents a significant step forward in the evolution of decentralized stablecoins. By prioritizing community ownership, transparency, and security, it addresses key limitations of existing models. Whether you are a DeFi enthusiast or a casual investor, understanding Usual's approach can provide valuable insights into the future of finance.
As with any emerging technology, due diligence is essential. However, Usual's innovative tokenomics and vision make it a project worth watching in the dynamic world of cryptocurrency.