What Is Usual Protocol?
Usual Protocol is a real-world asset-backed stablecoin protocol that issues USD0 — a stablecoin collateralised by US Treasury-backed RWA tokens — and USD0++ — a yield-bearing version of USD0 that distributes the underlying Treasury yield to holders. The USUAL governance token captures protocol value: a portion of the RWA yield generated by USD0 collateral is redirected to USUAL stakers rather than being retained by centralised issuers (as with USDC where Circle keeps the interest). This redistribution model is Usual Protocol's core value proposition — instead of Circle pocketing $5B+ annually in interest on USDC reserves, Usual distributes the protocol's RWA yield back to its community through USUAL tokenomics.
Usual Protocol is positioned as the community-owned alternative to centralised stablecoins, where the economic value generated by stablecoin collateral is shared with users rather than captured by a corporate issuer. This narrative resonated strongly in the DeFi community, driving significant USD0 adoption and USUAL token interest during its 2024 launch period on Binance Launchpool and other venues.
USD0: RWA-Collateralised Stablecoin
USD0 is a stablecoin backed 1:1 by approved Real World Asset tokens — specifically short-duration US Treasury-backed RWA tokens from regulated issuers. The collateral earns the current risk-free Treasury yield (typically 4–5% annually). Unlike Tether (USDT) or USDC, which retain this yield for their corporate issuers, Usual Protocol directs the yield to USD0++ holders and USUAL stakers. To mint USD0, users deposit approved RWA collateral (m-tokens from Hashnote, or similar US Treasury RWA tokens) and receive USD0 in exchange — maintaining the 1:1 peg through arbitrage. The RWA collateral is held in regulated custodian structures with legal bankruptcy protection — a key safety feature distinguishing Usual from algorithmic stablecoins. Understanding stablecoin yield strategies is useful context for evaluating USD0's risk profile.
USD0++: Yield-Bearing Stablecoin Bond
USD0++ is an interest-bearing version of USD0 with a 4-year minimum maturity period — holders deposit USD0 and receive USD0++ which accumulates yield over time. The yield paid to USD0++ holders comes from the underlying Treasury collateral yield. USD0++ can be traded on secondary markets before maturity, creating a liquid market for early exit at a discount. The 4-year maturity structure aligns with DeFi protocols' need for stable, predictable liquidity rather than purely short-duration instruments. From a DeFi composability perspective, USD0++ is used as collateral in lending protocols and as a stable yield-generating asset in portfolio strategies. The locked nature of USD0++ during the maturity period provides Usual Protocol with stable collateral that supports higher yield generation than purely liquid instruments. Compare USD0++ against similar yield-bearing stablecoin products like sFRAX and MakerDAO's sDAI for competitive context.
USUAL Token: Revenue Redistribution
USUAL captures protocol economics through a revenue redistribution model: as USD0 supply grows, more RWA collateral is managed, more Treasury yield is generated, and more USUAL tokens are minted and distributed to USUAL stakers as rewards. The emission rate of new USUAL tokens is tied to protocol revenue — higher revenue generates more USUAL rewards, creating a direct link between USD0 adoption and USUAL token value. USUAL governance controls collateral approval decisions (which RWA tokens are accepted as USD0 collateral), yield distribution parameters, and protocol treasury management. The innovative aspect of Usual's tokenomics is making USUAL stakers the primary beneficiaries of stablecoin revenue that would otherwise go to corporate shareholders — community-owned stablecoin infrastructure with explicit profit sharing. Apply tokenomics frameworks and monitor USD0 circulating supply growth as the primary driver of USUAL token fundamentals. Use the tools page for tracking stablecoin supply and yield metrics.
Investment Considerations
Usual Protocol's investment thesis is compelling: if community-owned, yield-redistributing stablecoins capture market share from centralised issuers, USUAL token holders benefit directly from USD0 supply growth. The TAM (total addressable market) is enormous — USDC and USDT combined circulating supply exceeds $100B, and the yield on that supply is retained by centralised issuers. Even modest market share capture represents significant revenue for Usual's community. Key risks include RWA collateral counterparty risk, regulatory risk around on-chain Treasury yield products, and competition from Frax, MakerDAO, and other DeFi stablecoin protocols. The USD0++ lock-up structure creates potential liquidity fragmentation. Apply risk management and monitor USD0 supply growth as the primary fundamental indicator for USUAL positioning.
Usual Protocol's Collateral Ecosystem
Usual Protocol's collateral strategy targets the highest-quality short-duration RWA tokens: products like Hashnote's USYC, BlackRock's BUIDL, and other regulated short-term Treasury products that are increasingly available on-chain. By accepting only institutional-grade RWA collateral, Usual maintains strict credit quality standards that support USD0's 1:1 peg reliability. The diversification across multiple RWA issuers reduces single-issuer concentration risk — if one RWA token issuer faces operational difficulties, only a portion of USD0's collateral is affected. This multi-issuer collateral strategy requires ongoing governance decisions about which RWA tokens to whitelist — an important responsibility for USUAL governance participants who must evaluate the creditworthiness and operational reliability of potential collateral issuers.
The community-owned stablecoin narrative resonates particularly with DeFi users who have become sophisticated about the economics of centralised stablecoins: USDC earns billions annually for Circle; USDT earns similarly for Tether. Users holding these stablecoins provide the collateral (dollar deposits) that generates these earnings while receiving zero direct benefit. Usual's model of redirecting a significant fraction of this yield to USUAL stakers and USD0++ holders creates a compelling alternative for stablecoin holders who want to retain economic alignment with their capital's productive use. As DeFi users become more conscious of the yield they forgo by holding idle USDC versus yield-bearing alternatives like USD0++ or sFRAX, the TAM for yield-bearing stablecoins grows. Monitor USD0 circulating supply growth, USD0++ TVL, and USUAL staking APY as the primary investment metrics. Compare against competing RWA stablecoin products on the tools page. Apply risk management when building stablecoin protocol exposure.
Usual Protocol's expansion roadmap includes launching USD0 on additional chains beyond Ethereum — targeting chains with significant DeFi TVL where stablecoin yield products are underserved. Multi-chain expansion would increase USD0 circulating supply and total RWA collateral managed, growing both the Treasury yield pool and USUAL token emissions. The technical challenge is maintaining USD0's 1:1 peg and collateral integrity across multiple chains — requiring robust cross-chain messaging infrastructure and consistent collateral accounting. Governance decisions about which chains to expand to and which cross-chain bridge infrastructure to use are critical risk management decisions that USUAL holders must evaluate carefully. Tracking Usual Protocol's multi-chain expansion progress alongside USD0 supply growth provides the most forward-looking indicator of USUAL's potential market capture. Apply position sizing discipline proportional to the early-stage protocol risk and monitor the stablecoin yield space for competitive developments.