Usual: Yesterday, USD0 briefly fell to 0.99 dollars due to a massive sell-off by a certain whale in the dollar system, but it has now returned to normal
Usual announced on social media that at 5 p.m. Singapore time yesterday, the Usual protocol experienced a massive USD0 sell-off triggered by a certain whale's secondary market transaction. This event raised questions about USD0's ability to peg to 1 US dollar. USD0 briefly fell to $0.99, then returned to the $1 peg within seconds, although there was initially a few basis points (bps) deviation due to continuous selling, but it fully recovered its peg several hours later.
USD0 can always be redeemed for its underlying collateral assets at a 1:1 ratio, ensuring the solvency of the Usual protocol. Currently, all USD0 can be redeemed on a T+0 basis and is supported by high daily liquidity short-term money market tools.
The peg has returned to normal and there is now plenty of immediate liquidity in the market for arbitrageurs to use. This incident was the first major stress test of USD0's anchoring ability; redemptions within several hours even exceeded GHO's entire TVL (Total Value Locked), but the protocol still operated as usual. The process will continue being optimized for efficiency and many exciting updates are expected soon.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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