Usual Money protocol update raises community concerns, USD0++ once dropped to 0.915 USD

ChainCatcher news, according to The Block, the update of the Usual Money protocol has caused its staked stablecoin USD0++ to drop 8.5% from $1 to $0.915 on decentralized exchanges. The protocol introduced a dual-path exit mechanism, allowing users to redeem USD0++ at a floor price of $0.87, or choose to forgo some earnings for a 1:1 redemption, but the changes made without prior notice have sparked criticism from the community.

USD0++ was originally a zero-interest bond-type token locked for four years, typically valued at $0.855 in the market, but could previously be redeemed 1:1 for USD0. After the update, a large number of holders sold off USD0++, leading to a severe imbalance in the Curve pool, with price fluctuations reaching 92%. Community members accused the team of not announcing in advance, locking up a large amount of funds, but some believe this move helps with long-term stability.