Key Takeaways:
- USD0, a 1:1 Real World Asset (RWA)-backed stablecoin, debuts on Fluid with a USDC liquidity pool.
- Liquidity providers (LPs) earn dual yields: trading fees + lending Annual Percentage Rate (APR) + $USUAL rewards.
- Fluid’s “relending” mechanism optimizes capital efficiency for tighter spreads.
- Early depositors gain a 1.25x rewards boost; 1,000 slots available.
Usual’s USD0 Stablecoin Merges RWA Safety with DeFi Yields
Usual, a real-world asset (RWA) protocol, announced its treasury-backed stablecoin USD0 on decentralized exchange Fluid, where it provides a liquidity pool that allows users to earn dual yields from trading and lending, something RWA-focused stablecoins have never done before. The partnership seeks to combine the security of traditional finance and decentralized finance (DeFi)’s innovation while also providing liquidity pools (LPs) with annualized returns of greater than 15%.
Usual’s official X announcement:
Why USD0 Stands Out: RWA Meets DeFi Mechanics
USD0 distinguishes itself by being fully collateralized by U.S. Treasury bills, providing transparency via real-time reserve audits. Unlike algorithmic stablecoins, USD0’s 1:1 asset backing minimizes depeg risks while offering:
- Stability: Immune to crypto volatility, akin to USDC but with RWA transparency.
- Yield Stacking: Fluid’s pool combines base APR from trading fees, lending income, and $USUAL token incentives.
- Capital Efficiency: Fluid’s “Smart Collateral” system reuses idle liquidity across DeFi protocols.
This is beyond a pool; it’s a yield engine. The protocol is merging T-bill safety with DeFi’s composability.
Fluid’s Innovation: Relending Redefines Liquidity
Fluid’s architecture allows LPs to earn twice:
- Trading Fees: From swaps between USD0 and USDC.
- Lending APR: By automatically relending pooled assets to money markets like Aave.
This contrasts with traditional pools (e.g., Uniswap), where liquidity sits idle. Early adopters can boost rewards by 25% via Fluid’s limited-time incentive program.
Market Impact and Risks
- TVL Surge: $645M deposited within the first hours of launch.
- Competitive Edge: USD0’s yields outpace USDC’s average 5.2% DeFi returns.
- Risks: Smart contract vulnerabilities and potential T-bill liquidity crunches remain concerns.
RWA protocols must balance yield hunger with regulatory compliance. So far, USD0’s success hinges on both.
DeFi’s RWA Inflection Point
Usual’s launch comes on the heels of BlackRock’s BUIDL fund and the expansion of Ondo Finance’s RWA initiatives, meaning institutional-grade RWAs are set up to be DeFi’s next growth pillar. With $8B already locked in RWA protocols, Fluid’s integration with USD0 could accelerate this trend.
Will dual-yield RWA pools become DeFi’s new gold standard, or will regulatory scrutiny dampen the hype? As T-bill yields dip, innovation like Fluid’s relending may decide the answer.
