BlockBeats News: On January 1st, Usual officially announced that yesterday (07:00 AM UTC on December 31st), the Usual protocol experienced a large-scale sell-off of USD0 triggered by a single whale trading on the secondary market, which raised doubts among users about USD0 and dollar anchoring. USD0 briefly fell to $0.99, with some basis point deviation due to continued selling, but quickly recovered to full peg. All US dollar stablecoins in the market will experience a price fluctuation of a few basis points around 1 US dollar, which is a normal phenomenon brought about by the US dollar stablecoin mechanism.
USD0 can always redeem its underlying collateral in a 1:1 ratio to ensure the solvency of the Usual agreement. Exchange is processed through smart contracts, and currently any entity listed on the whitelist can access it. Our ultimate goal is to make it completely permissionless. USD0 also has strong secondary liquidity, and the secondary liquidity of collateral depends on tokenized RWA issuers. Usual chooses diversified assets such as USYC, Ethena's USDTB, BlackRock's Securitize's BUIDL fund, Ondo's OUSG, etc. to ensure multiple exit paths and optimal liquidity. This event is a major stress test for USD0 anchoring, and Usual remains strong and will always monitor the stability of the system.
