How It Works
Users deposit accepted RWA tokens (primarily Hashnote's USYC — a tokenized Treasury bill) to mint USD0 at a 1:1 ratio. The deposited RWAs earn Treasury yield, which is redirected to the Usual Protocol treasury. USD0 can be staked into USD0++ (the yield-bearing version), which earns a share of Treasury yield distributed as USUAL tokens and yield-bearing rewards. The peg is maintained by direct redemption: USD0 is always redeemable for $1 of underlying RWAs. Usual's innovation is the governance model: USUAL token holders govern how protocol revenue is distributed, aligning the stablecoin with its user community.
Backing Type: RWA-Backed
Real World Asset (RWA) stablecoins are backed by tokenized real-world financial instruments — primarily US Treasury bills, money market funds, or corporate bonds. The yield from these instruments can be passed to holders, making RWA stablecoins inherently yield-bearing.