The post USD0++ loses 1:1 USD peg, panic reigns  appeared on BitcoinEthereumNews.com.

On January 9, the stablecoin issued by Usual, USD0++, suddenly lost its 1:1 peg to the USD to around $0.937, with one USD0++ token now only redeemable for less than the expected $1. The sudden loss of stability compounds a rough start to the year that began with Usual’s token, once a market favorite, losing its momentum.  The token price already dropped by over 30% within a week. Usual was one of the eye-catching stablecoin projects that emerged in 2024, launching on Binance at the end of 2024 with great market performance. It has the backing of French MP Pierre Person’s government background and Binance’s famed launchpad. The stablecoin markets saw a boom in 2024, with at least 23 stablecoin projects securing substantial funding ranging from 2 million to 45 million in the second half of the year.  How the market reacted to USD0++ losing its 1:1 peg Crypto market analysts quickly took to X to warn their audience about further price drops in the future. The question everyone is asking now is whether USD0++ is about to become another UST.  The USD0++ stablecoin fell to a low of $0.89 before rising to stabilize at around $0.93—about 7% below its intended $1 peg. The dual exit system provides users with two redemption options: A conditional exit: this option allows for 1:1 redemption at the $1 peg but demands that users forfeit a portion of accrued rewards. An unconditional exit: this option allows redemption at a current floor price of $0.87, but it is set to rise gradually to $1 over a period of four years. The abrupt changes to the protocol’s official documentation shocked many users, shaking out weak hands and leaving the stronger ones gasping for clarity. Stani Kulechov, founder of Aave, shared his opinions on the situation via…

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Filed under: News - @ January 11, 2025 2:26 am