Usual Money’s stablecoin, USD0++, which is backed by U.S. Treasury bonds, experienced a significant drop in value following a recent update. The coin went from being worth $1 to $0.915, representing a loss of 8.5%. This decline has sparked discussions within the altcoin community about the stability and reliability of this asset.
The Transition to a New Structure for USD0++
USD0++ is different from Usual Money’s core stablecoin, USD0, and functions similarly to a zero-coupon bond. Over the course of four years, it matures into the protocol’s main asset, USUAL. Financial expert mytwogweis has pointed out that “As of today, USD0++ should have a fair market value of approximately $0.855. Buying at $0.855 and holding for four years can yield a risk-free return to $1.”
Before the update, the USD0++ coin could be exchanged one-to-one for USD0. However, with Usual Money’s recent announcement, this has changed. Coin holders must now choose between two new exit options: early redemption with a 1% yield loss or selling at a base price of $0.87, which will gradually increase to $1 over the next four years.
Community Response Sparks Debate
Some members of the altcoin community have reacted negatively to these changes, arguing that USD0++ was originally marketed as a stable asset pegged to $1. A user named Olimpio stated, “They have suddenly fixed the USD0++ coin at a base price of $0.87, resulting in a total loss of $1.5 billion.”
Another community member criticized the Usual Money team for previously claiming that USD0++ could be exchanged at a one-to-one ratio with USD0, only to suddenly remove that functionality, leaving users in a difficult position to maintain the value of their locked assets.
On the other hand, some community members believe that this change may prove beneficial in the long run. User May Mei commented, “USD0++ is essentially a four-year bond for USD0. It yields returns in USUAL daily. Yes, it seems like a sudden decision, but it might be advantageous in the long term.”
Following the update, USD0++ holders took action to exit, causing a 92% imbalance in the liquidity pools involving USD0 and USD0++ coins.
In December, Usual Money introduced a new reserve model and launched a new stablecoin project called UsualM. This project received a $10 million investment round led by Binance and Kraken.
