Usual USD (USD0)

Stability and Medium of Exchange

Usual USD (USD0) is a stablecoin fully backed 1:1 by real-world assets like US Treasury Bills. It provides a stable, secure asset that is independent of traditional banking systems, making it fully transferable and accessible within the decentralized finance (DeFi) ecosystem. It serves as a reliable medium of exchange and store of value, maintaining price stability unlike more volatile cryptocurrencies.

Decentralized Finance (DeFi) Integration

USD0 supports transparency and security by maintaining real-time reserves and is designed to be on-chain verifiable and composable. It can be used within DeFi applications for various financial activities such as lending, borrowing, and staking, enabling users to participate in decentralized financial services.

User Ownership and Governance

The Usual protocol empowers users by redistributing ownership and governance through the $USUAL token. This governance token aligns incentives for contributors, fuels protocol growth, and allows users to have a say in the infrastructure and treasury management, promoting a more equitable financial ecosystem.

Rewards and Growth Incentives

Holding USD0 can earn rewards in the form of $USUAL tokens, which incentivize the growth and adoption of the stablecoin. The protocol includes features like yield optimizers, fixed rates, and fixed terms to enhance user benefits and encourage participation.

Cross-Industry and Global Use

Usual aims to integrate its stablecoin into various industries to create a more inclusive and fair financial ecosystem. Its design supports fast, secure, and cost-effective transactions across borders, making it suitable for global payments and financial interactions beyond traditional banking limitations.

Pros of Usual USD

• Usual USD is a stablecoin backed by real-world assets, aiming to maintain a stable value close to $1.
• It allows quick and cost-effective transfers globally, transcending banking hours and borders.
• Usual USD can be used instantly for trading, payments, and accessing decentralized finance (DeFi) without conversion delays.
• It offers flexibility to move funds quickly if market conditions change.
• The token contract can be integrated into wallets like MetaMask for easy management and trading on decentralized exchanges.
• It shares value with users through the $USUAL token, potentially providing additional benefits.

Cons of Usual USD

• The contract owner has the ability to make changes to the token contract, including minting or disabling sells, which requires caution.
• Usual USD is underperforming compared to other stablecoins and the broader crypto market recently.
• As a stablecoin, its value is tied to the U.S. dollar, so it is subject to the same inflation and currency risks as the dollar.
• It is a relatively new and less verified contract, which may affect trust and adoption compared to more established stablecoins.

In summary, Usual USD offers the advantages of stable value and fast, borderless transactions typical of stablecoins, but users should be aware of its current market performance and contract control features.

Founders of Usual USD

Usual USD, also known as USD Coin (USDC), was created by the Centre Consortium, a joint venture between two major companies: Circle and Coinbase. The key founders from these companies include:

• Jeremy Allaire: Co-founder, Chairman, and CEO of Circle, a global financial technology company.
• Sean Neville: Co-founder of Circle alongside Jeremy Allaire.
• Brian Armstrong: Co-founder of Coinbase, a leading cryptocurrency exchange.
• Fred Ehrsam: Co-founder of Coinbase.

These founders collaborated to launch USDC in September 2018, aiming to create a stablecoin pegged 1:1 to the Usual USD, backed by reserves held in cash and short-term U.S. Treasury bonds.

Investors in Usual USD

Usual USD is backed by real-world assets such as US Treasury Bills, attracting both individual and institutional investors who seek a stable and reliable digital currency. The project emphasizes community governance and redistributes ownership through its $USUAL token, with 90% of governance tokens distributed to the community. This approach encourages broad participation and investment from users who want to be part owners of the protocol.

Comparison to Other Stablecoins

Unlike Usual USD, which is backed by real-world assets and governed by its community, other stablecoins like USDC are backed by cash and short-term U.S. government bonds. USDC was initially funded by major financial institutions including Goldman Sachs and Breyer Capital, and is supported by companies like Circle and Coinbase. These investors provide confidence and capital to USDC, making it a widely used stablecoin in the crypto market.

Summary

• Usual USD investors include individual and institutional participants attracted by its real-world asset backing and community governance model.
• Ownership and governance are shared with users through the $USUAL token.
• This model contrasts with other stablecoins like USDC, which have backing from large financial firms and established crypto companies.

Halal Status of Usual USD

Usual USD (referring to stablecoins like USDC) is generally considered halal because it is backed 1:1 by actual US dollars and short-term US Treasury bonds held in regulated financial institutions. The business model is transparent, and the stablecoin serves legitimate purposes such as facilitating payments and trading. However, some scholars note that earning interest-like rewards on USDC (such as APY from staking or rewards programs) may not be halal.

Summary

• Usual USD stablecoins like USDC are halal as they comply with Islamic finance principles by being fully backed and transparent.
• Earning interest or rewards on these stablecoins may not be halal according to some opinions.
• It is important to ensure the specific use and project behind the token aligns with halal principles.