Usual officially announced that yesterday (07:00 am, December 31, UTC), the Usual protocol experienced a massive sell-off of USD0 caused by a whale transaction in the secondary market, which triggered users' questions about the peg of USD0 to the US dollar. USD0 briefly fell to $0.99, with some basis point deviations due to continued selling, but soon recovered to full peg. All USD stablecoins on the market will experience price fluctuations of several basis points around $1, which is a normal phenomenon brought about by the USD stablecoin mechanism.
USD0 can always be redeemed for its underlying collateral at a ratio of 1:1 to ensure the solvency of the Usual protocol. Redemption is handled through smart contracts, which are currently accessible to any whitelisted entity, and our ultimate goal is to make it completely permissionless.
USD0 also has strong secondary liquidity. The secondary liquidity of collateral depends on the tokenized RWA issuer. Usual chooses diversified assets such as USYC, Ethena's USDTB, BlackRock's Securitize's BUIDL fund, and Ondo's OUSG to ensure multiple exit channels and optimal liquidity. This incident is a major stress test for USD0's dollar anchor. Usual remains strong and will always pay attention to the stability of the system.