While the fee switch has been a popular story in the DeFi ecosystem lately, Usual has announced the sharing of its revenue with holders of its token. How will this work?
The revenue switch arrives on the Usual protocol
This week, the decentralized finance (DeFi) protocol Usual presented a new functionality allowing you to redistribute all of your monthly income to its users: the Revenue Switch.
To do this, you must deposit your USUAL tokens on the application in order to receive USUALx. Subsequently, this income distribution will be activated either when 50% of USUAL's offer will be placed on the module, i.e. on February 1st. These rewards will then be distributed in USD0, the protocol's stablecoin:
100% of the protocol's monthly revenue will be distributed directly to USUALx stakers. At current revenue levels, that's about $5 million per month. Rewards will be distributed in USD0, in addition to USUAL's staking yields, increasing the value for participants.
💡 Fee switch, revenue switch, what is it?
To be eligible for monthly income sharing, you will also need to have been committed for the entire month in question, while early withdrawal disqualifies the investor from this portion of the rewards.
Although at present, the module in question offers a cumulative return of 213%, let us nevertheless remember the inherent risks of these tools. Indeed, it is appropriate to relate the return of such a product to the volatility of the underlying token.
In this case, USUAL notably saw its price decrease by almost 59%, after reaching a high of $1.65 on December 20, in the wake of a $10 million fundraising. At the time of writing, the asset is trading at $0.68, down 8.4%:
USUAL token price in daily data
If you wish to take advantage of the opportunity brought by this novelty, you should do so in a reasoned manner with regard to your risk management.
For his part, the stablecoin USD0 seems to convincewith capitalization rising sharply over the past 2 months. As of today, USD0 is capitalized at $1.75 billion, making it the 7th largest stablecoin on the market.
👉 To go further — Watch our video on the Usual protocol
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Source: Usual
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Investments in cryptocurrencies are risky. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital