USUAL protocol: A Ponzi Scheme disguised as RWA

The USUAL protocol is a Ponzi Scheme disguised as US Treasury yield. This protocol has a total of 5 types of tokens:

1. USUAL - Governance Token
2. USD0 - stablecoin
3. USD0++ - 4-year Treasury bond token
4. USUALX - USUAL Staking Version
5. USUAL* - Team and Investor Exclusive Token

The operation model of the protocol seems attractive: it claims to bring the stable 4% yield of U.S. Treasury bonds onto the chain, and without permission. However, this is just a facade.

To attract users, the protocol has launched the USUAL token with a yield of up to 70%. Users can mint USD0++ at a 1:1 price while receiving USUAL tokens as rewards. Although the price of USUAL has fallen to $0.66, it still offers an annualized return of 28%.

To eliminate user concerns, the protocol allows for the 1:1 redemption of USDC at any time, and multiple vaults have been established on a certain lending platform to fix the USD0++ oracle price at 1 dollar. This has led some users to have the illusion that USD0++ can be redeemed at a 1:1 ratio at any time.

However, the protocol suddenly announced the closure of the 1:1 redemption channel, allowing an exit only at a price of 0.87 for USD0++. This means that the protocol withdrew about 260 million USD from a total locked value of nearly 2 billion USD.

This fund is claimed to be allocated to USUALX holders. The USUAL* token retains more rights for the team and investors, including minting tax and 50% of the fee distribution.

The reason the project party adopts this practice is that Ponzi Scheme is difficult to maintain. The price of USUAL continues to decline, and if no measures are taken, the protocol will face a death spiral.

This series of operations harmed all participants, including USD0++ holders, leveraged traders, and liquidity providers. The only beneficiaries were the project team.

For those who have not yet come into contact with USUAL, it is recommended to stay away. For users who have already participated, they should either cut their losses and exit or bear the risks and continue participating. However, it should be noted that in an unregulated environment, project parties often lack moral standards.