Usual Labs’ USD0++ Token Declines to $0.92 Amid Redemption Model Changes
Usual Labs is experiencing backlash as its staked token, USD0++, has dropped to $0.92 following changes in its redemption structure. This alteration has diminished investor confidence and raised concerns about the stability of the USD0 ecosystem.
Key Issues with USD0++
- Changes transformed USD0++ from a predictable investment into a riskier option.
- Users previously staked funds and earned rewards in USUAL, with guaranteed 1:1 withdrawal rates.
- The new system requires users to either give up part of their rewards or cash out at lower prices, starting at $0.87.
- This uncertainty led many investors to sell off their holdings, destabilizing USD0++'s liquidity pool on Curve.
- The token's value fell below $1, indicating a loss of confidence among users.
Impact of Usual Labs’ Silence
- Trust and liquidity have been undermined due to recent changes.
- Users question the value of USD0++, which was once seen as a safe, high-yield option.
- Despite securing $10 million in funding and a $75 million Total Value Locked (TVL), Usual Labs has not publicly addressed the situation.
- Similar past issues have affected other crypto projects that altered core mechanics, such as TerraUSD (UST) and Iron Finance.