Usual Protocol to activate ‘revenue switch’ after USD0++ depegs
Usual Protocol's staked stablecoin USD0++ depegged from $1, dropping to $0.89 on January 9, prompting community backlash. In response, the protocol introduced measures including an early "revenue switch" starting January 13, which will distribute approximately $5 million monthly to users, yielding over 50% annually. A "1:1 Early Unstaking" feature will also be activated, allowing users to redeem USD0++ at $1 by forfeiting some rewards. Changes to the redemption value and introduction of dual exit mechanisms have led to multimillion-dollar liquidations on platforms like Curve Finance. Critics, including Aave's founder, expressed concerns over the governance and unexpected nature of the updates, questioning the lack of a DAO vote on the price floor adjustments.
