Usual responded to the short-term de-anchoring of USD0: It was caused by a large-scale sell-off by a whale, and it has now been restored to the anchor

Usual posted on X that at 5 pm Beijing time yesterday, the Usual protocol experienced a massive USD0 sell-off triggered by a whale in a secondary market transaction. This incident raised questions about the ability of USD0 to anchor. USD0 briefly fell to $0.99 and then returned to $1 within seconds, although there was a deviation of several bps initially due to continued selling, but the anchor was fully restored after a few hours. Officials said that USD0 can always be exchanged for its underlying collateral at a ratio of 1:1, thus ensuring the solvency of the Usual protocol. This exchange is handled through smart contracts and is currently accessible to any whitelisted entity. The ultimate goal is to make it completely permissionless, but extensive audits are conducted before granting access to open collateral. Currently, all USD0 can be redeemed on a T+0 basis and is supported by high daily liquidity short-term money market instruments. Despite the pressure, the usual infrastructure and model have proven to be solid, the anchor has returned to normal, and there is now a large amount of instant liquidity available for arbitrage. Overall, this event was the first major stress test of USD0’s anchoring ability, with the amount redeemed in a few hours exceeding the entire TVL of GHO, but everything went as usual. The team will continue to improve the process and improve efficiency, and a series of updates will be launched soon.