The decentralized finance (DeFi) landscape welcomes a new contender: Usual Labs. On July 10th, the project announced the official launch of its mainnet alongside a points campaign. Users can earn points, called Pills, by providing liquidity or holding USD0++, which can later be converted into an airdrop of the protocol's native token, $USUAL.
An Introduction to Usual Labs
Usual Labs is a startup specializing in stablecoin technology. Its founder, Pierre Person, is a French politician and member of parliament who has been a leader in crafting France's crypto asset legislation.
The project has already secured $7 million in a seed funding round. This round was led by IOSG Ventures and Kraken Ventures, with notable participation from StarkWare (the developer of Starknet) and Mantle.
The core product of the Usual protocol is the USD0 stablecoin. Unlike traditional stablecoins like USDT and USDC, USD0 is backed 1:1 by extremely short-term Real World Assets (RWA) and government bonds. This backing model is designed to provide higher security and stability, reducing the probability of discounted liquidations in the event of a bank run or asset crunch.
In its communications, Usual frequently contrasts itself with Tether, the company behind USDT. It argues that after issuing USDT, Tether did not return the profits generated from these stablecoins to the users themselves.
Tether's annual profits approach nearly $10 billion, yet these are distributed to a very small group; the company itself has fewer than 100 employees. Consequently, Tether is often viewed as one of the world's most profitable tech companies.
Usual's mission is to return the ownership of the stablecoin issuance and the profits generated from it back to the users.
Within the Usual Protocol, users can deposit assets to mint USD0, which acts as a deposit certificate (LDT) within the system. Holders of USD0 can then choose to lock it to provide liquidity or issue Liquidity Bond Tokens (LBT) by converting USD0 into USD0++. This allows them to participate in the DeFi ecosystem and earn corresponding yields. These yields include a potential airdrop of the governance token $USUAL and possible deposit returns.
The "Banking Matrix" and a Cultural Nod
Usual has cleverly designed its points system around a purple pill, invoking the phrase "Break free from the banking matrix." This is a clear nod to the iconic sci-fi film The Matrix, released over twenty years ago.
In the movie, the Matrix is a virtual reality system that controls and confines humanity, preventing people from seeing the true reality of the world after machines have taken over.
Usual's concept of the "Banking Matrix" appears to be a metaphor for the current banking system or centralized stablecoin issuers. It suggests this system, much like the virtual reality in the film,束缚s individuals, preventing them from seeing or experiencing the true potential and freedom of decentralized finance.
The purple pill, serving as the project's points token, echoes the film's famous red and blue pills. The protagonist is given a choice:
- The red pill: represents escaping the virtual system to learn the truth, even if reality is painful.
- The blue pill: represents choosing to remain in a comfortable illusion, refusing to disrupt the status quo.
Usual's purple pill is a blend of red and blue. It seems to emphasize a balanced choice, suggesting a revolutionary new way to break free from the constraints of traditional banking and centralized institutions. Simultaneously, Usual promises to provide a safe and reliable stablecoin (USD0) to replace them.
This design incorporates the awakening and transformative meaning of the "red pill" while also carrying the safety and stability connotations of the "blue pill"—a novel and intriguing concept.
The mainnet and points campaign are now live. The airdropped tokens will constitute 7.5% of $USUAL's total supply. The campaign began on July 10, 2024, and will run for four months.
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How to Participate in the Usual Campaigns
1. The Main Pills Campaign
To get started, connect your wallet to the Usual application. You will be prompted to follow the project's official Twitter account to proceed.
The interface will guide you to a deposit screen. Here, you can choose to deposit assets to mint USD0. Be aware that these initial deposit operations occur on the Ethereum mainnet, so gas fees may be high depending on network congestion. You can click "Skip" to postpone this step if necessary.
The points (Pills) rewards are structured as follows:
- Hold USD0++: Users can purchase USD0++ directly with USD0. Each USD0++ held grants 5 Pills (a one-time reward) and then 3 Pills every subsequent day.
- Provide Liquidity: Users can provide liquidity in USD0/USDC or USD0/USD0++ pools on Curve Finance. Every dollar of liquidity provided earns 1 or 3 Pills per day, depending on the pool.
If you skip the initial steps, you can always deposit assets later by navigating to the "Drugstore" section in the left sidebar. There, you will find options to hold USD0++ and add liquidity.
A key feature is the multiplier visible at the top of the page. This multiplier increases your Pills earning rate by 2% per day, up to a maximum of 10x, the longer your assets remain deposited or in the liquidity pool. Withdrawing your assets resets this multiplier to 1x. This mechanism rewards early and long-term participants with significantly more points.
The campaign also includes a referral program. Users can invite friends to join, earning a bonus equivalent to 10% of their referred friends' total Pills.
2. The Galxe Campaign
Usual has also launched a "Pills Campaign" on the Galxe platform. This consists of a series of simple social tasks, such as following social media accounts or joining community channels, offering an alternative way to engage with the project.
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Frequently Asked Questions
What is the USD0 stablecoin?
USD0 is a decentralized stablecoin issued by the Usual protocol. It is uniquely backed 1:1 by short-term real-world assets (RWA) and government bonds. This model aims to provide enhanced stability and reduce liquidation risks compared to some other stablecoins.
How do I earn the $USUAL airdrop?
You can earn the upcoming $USUAL airdrop by accumulating Pills points. Points are earned by holding the USD0++ derivative token or by providing liquidity for USD0 in designated pools on Curve Finance. The points campaign runs for four months from its start date.
What is the purpose of the purple pill concept?
The purple pill is a metaphorical nod to The Matrix film. It represents Usual's mission to offer a balanced choice: breaking free from the traditional "Banking Matrix" (the red pill aspect) while still providing the safety and reliability of a well-backed stablecoin (the blue pill aspect).
Can I participate if I want to avoid high Ethereum gas fees?
Yes. The initial interaction allows you to skip the deposit step, which requires gas fees. You can complete the social tasks and connect your wallet without immediately depositing funds. You can return to deposit assets and provide liquidity when gas fees are lower.
What happens to my multiplier if I withdraw my assets?
If you withdraw your deposited assets or liquidity pool tokens, your earning multiplier will reset to 1x. The multiplier increases by 2% per day, rewarding users who keep their assets locked in the protocol for longer durations.
Is there any other way to earn besides depositing assets?
Absolutely. Beyond the main campaign, you can participate in the simpler social tasks on the Galxe platform to earn additional rewards. There is also a referral program that rewards you for inviting others to participate.