What is What is Usual (USUAL)??
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🟢 The simple version
Plain English — no jargon. Start here.
Usual is a decentralised stablecoin protocol where USD0 is backed 1:1 by real-world assets (primarily US Treasury bills) — the yield generated by those T-bills flows to USUAL token holders rather than being kept by the issuer, making it a community-owned alternative to Tether and Circle.
Why does it matter who keeps the yield?
Tether holds billions in US Treasury bills as collateral for USDT. Those T-bills earn ~4-5% annual yield. Tether keeps all of it — $6.2 billion in profit in 2024, distributed to Tether Ltd shareholders. USDC does the same for Circle. Usual proposes a different model: the yield on the collateral belongs to the community. USD0 holders can stake for USD0++ (yield-bearing version) that accrues the T-bill yield, or for USUAL tokens that capture the protocol revenue spread.
This is the "fair stablecoin" narrative — analogous to how Hyperliquid positioned itself against CEXes by returning fees to users. Usual attracted significant TVL in late 2024 by sitting in the gap between traditional bank-backed stablecoins (USDC, USDT) and algorithmic stablecoins (which have a poor track record).
Is USUAL legal in India?
Yes. USUAL qualifies as a Virtual Digital Asset (VDA) under Indian law. USD0 is also likely a VDA. 30% tax on gains and 1% TDS applies. Always consult a tax professional.
🟡 A bit more detail
For when you want to go a little deeper.
USD0 vs USD0++ vs USUAL
Usual has three tokens. USD0 is the base stablecoin — 1:1 backed by RWAs, redeemable for $1. USD0++ is a staked version — lock USD0 for a period and earn the underlying T-bill yield. USUAL is the governance and value-capture token — it accrues value from the spread between T-bill yield on collateral and yield paid to USD0++ holders.
The model resembles MakerDAO in structure (stablecoin + governance token) but with T-bill collateral rather than overcollateralised crypto. This makes USD0 more capital-efficient than DAI (no overcollateralisation) but introduces RWA custodianship risk.
USD0's T-bill collateral is held by regulated RWA protocols. If the custodian fails, is sanctioned, or T-bill markets face stress, USD0's 1:1 backing could be impaired — similar to USDC's brief depeg during the SVB bank failure in 2023. Live data: CoinGecko
USUAL vs Ethena vs USDC
USDC: bank-backed, Circle keeps yield, centralised. Ethena USDe: delta-neutral ETH hedge, funding rate yield. Usual USD0: T-bill backed, yield flows to community. Three different points on the risk/yield/decentralisation spectrum.
🟣 The full technical picture
For the technically curious.
Key facts
- Tokens: USD0 (stablecoin) + USD0++ (yield-bearing) + USUAL (governance)
- Collateral: US Treasury bills via RWA protocols
- Yield model: T-bill yield flows to community, not issuer
- vs Tether: Usual redistributes yield; Tether keeps $6B+/year
- vs Ethena: Usual = T-bill backed; Ethena = delta-neutral ETH hedge
- Capital efficiency: 1:1 backed (no overcollateralisation like DAI)
- Chain: Ethereum
- India tax: VDA — 30% gains tax + 1% TDS on USUAL; USD0 also likely VDA