Usual Protocol Stablecoin Loses Peg, Now Trading 9% Below Dollar

The Usual Protocol’s stablecoin, USD0++, has lost its peg and is now trading at $0.91 after the company announced a change in its design. The team effectively transformed USD0++ from a stablecoin into a four-year zero-coupon bond worth $0.87.

Following the announcement, hundreds of millions in user funds found themselves trapped in protocols still trading under the illusion that USD0++ is worth a dollar.

Users now face a dilemma: exit the protocol with a 9% fee or wait four years to get their full dollar back.

Usual tried to downplay the situation, saying it was just a miscommunication and that the protocol is working as expected. However, this hasn't helped, as the project's native token, $USUAL, has lost about 50% of its value over the last two weeks.