USD0++

Usual Protocol responded to growing concerns within the crypto community regarding the USD0++ floor price mechanism by introducing two significant updates. Key Takeaways:- Usual Protocol introduces a 1:1 early redemption feature and weekly revenue distributions starting next week.- The USD0++ stablecoin has dropped over 8% below the $1 mark, triggering panic among users as DeFi platforms adjust their valuations. The first is the activation of the 1:1 early redemption feature, set to begin next week. It allows users to forfeit part of their accumulated rewards over a period of up to six months, ensuring a 1:1 redemption ratio. The second change involves the acceleration of revenue distributions, with weekly payouts to USUALx holders starting next week. The protocol expects to distribute approximately $5 million per month, offering a more frequent revenue-sharing structure to its community. The updates come amidst a volatile period for Usual Protocol’s stablecoin, USD0++. Over the past few hours, the USD0++ price has dropped by over 8% below the $1 mark, triggering widespread sell-offs in the DeFi space. This has been attributed to recent changes that led to a deep depegging of USD0++ from its $1 target. While Usual Protocol's primary stablecoin, USD0, is backed by US Treasury bills and is designed to maintain a 1:1 value with the dollar, the staking version, USD0++, has seen a marked decline in value. Users who staked their assets for four years to earn interest in the form of the USUAL governance token were affected when major DeFi platforms, such as Pendle, were forced to adjust their valuations of USD0++. The protocol, which combines cryptocurrency with Real World Assets (RWA), has garnered significant attention following a $10 million funding round from notable investors like Binance Labs and Kraken. However, its stablecoin USD0 has faced challenges in maintaining its peg, most notably earlier this year when large holders dumped their positions. Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.