TechFlow news, January 10 — According to The Block, an update to the Usual Money protocol caused its staked stablecoin USD0++ to drop 8.5% in price on decentralized exchanges from $1 to $0.915. The protocol introduced a dual-exit mechanism allowing users to redeem USD0++ either at a floor price of 0.87 USD0 or opt for a 1:1 redemption by forfeiting part of their yield. However, the change, made without prior notice, has drawn criticism from the community.
USD0++ was originally a zero-coupon bond-like token with a four-year lock-up, typically valued at $0.855 in the market, but previously redeemable 1:1 for USD0. After the update, a large number of holders dumped USD0++, causing severe imbalance in its Curve pool and price fluctuations up to 92%. Community members have accused the team of making the change without advance announcement and locking up significant funds, although some argue the move could benefit long-term stability.
