A scenario similar to what happened with the Terra protocol in 2022 has now occurred with the Usual altcoin protocol. Sales from a single whale wallet led to price instability. Details below…
Usual Protocol Shakes the Altcoin Market with Sales
This morning, a large sale of Usual protocol’s USD0 stablecoin took place. This sale was triggered by transactions made by a single whale on the secondary market. The massive sell-off raised doubts about the USD0’s stable value. USD0 briefly fell below its $1 peg, reaching 0.99. However, following the sell-off pressure, the stablecoin quickly rebounded to the $1 level. Initially, there was a slight fluctuation (bps deviation), but within hours, USD0 returned to a fully stabilized value.
USD0 is known as one of the most stable stablecoins in the market. It is more common for stablecoins like FDUSD, PYUSD, and USDe to trade slightly below their $1 peg. The stable performance of USD0 is easily verified by users.
USD0 can always be redeemed 1:1 for collateral. This collateral conversion process ensures the reliability of the Usual protocol. The transaction is accessible to anyone or institution on the whitelist and is carried out through a smart contract. While the ultimate goal is to make collateral access completely permissionless, thorough audits are being conducted before reaching this stage.
The USD0 stablecoin is supported by secondary liquidity backed by tokenized real-world assets (RWA). The Usual protocol prefers collateral with the highest liquidity. In this regard, USYC has been selected, and diversification with different assets has been carried out. Current collateral includes M by M^0, USDTB from Ethena, BlackRock BUIDL from Securitize, and OUSG from Ondo. This diversity helps preserve liquidity and increase alternative exit paths. USD0 stablecoin can currently be easily recycled on a T+0 (same-day) basis.
USD0 Proved Its Resilience
Today’s event was the first major stress test for USD0’s peg. More transaction volume was executed in a few hours than the total locked value (TVL) of GHO. However, despite all this pressure, the Usual protocol continued to operate successfully. The Usual team emphasizes that they are always open to liquidity development proposals and partnerships. The stability of the system remains the top priority, and exciting updates will be shared with users soon.
A Stablecoin Lost Its Peg Due to a Massive Whale Sale! Here’s What Happened
Usual Coin is a project that stands out by combining blockchain technology with a user-focused approach. It is also a platform offering flexibility that meets the needs of both individual users and businesses. The project appeals to a broad audience, which helps increase the adoption rate of Usual Coin, laying the foundation for both the platform’s growth and long-term success. We’ve provided detailed information about the project in this article.
