The convergence of real-world assets (RWA) and decentralized finance (DeFi) is reshaping the stablecoin landscape. In a recent X Space hosted by BlockBeats, Pierre Person (Co-Founder and CEO of Usual), Yoko (Growth Lead at Usual), and TN (Co-Founder and CEO of Pendle) explored how their collaboration could redefine yield generation in the DeFi ecosystem. This article dives into the mechanics, vision, and potential of the Usual + Pendle partnership — a promising fusion of RWA-backed stability and yield-tokenized innovation.
Introducing Usual and Pendle: Two Pioneers in DeFi Innovation
Usual is a decentralized stablecoin protocol backed by short-term U.S. Treasury bonds — a form of real-world asset (RWA). Unlike traditional stablecoins such as USDT or USDC, which generate profits for centralized entities without sharing them with users, Usual is designed to redistribute value directly to its community. With nearly $360 million in total value locked (TVL) and an upcoming token generation event (TGE), Usual aims to build a fairer, more transparent financial system.
Pendle, on the other hand, is a yield-tokenization protocol launched in 2020. It allows users to separate yield from principal, creating two distinct tokens:
- YT (Yield Tokens): For those seeking leveraged exposure to future yields.
- PT (Principal Tokens): For risk-averse investors wanting fixed returns.
This innovative model has made Pendle a go-to platform for yield optimization — making it a natural partner for Usual’s mission.
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The Strategic Partnership: Why Usual Chose Pendle
The collaboration began in August when Usual launched its first pool on Pendle. The synergy lies in their shared focus on user empowerment, yield efficiency, and DeFi composability.
As Pierre explained, the integration enables two types of user behavior:
- Aggressive yield seekers buy YT tokens, betting on Usual’s future growth and TGE success.
- Conservative investors opt for PT tokens, securing fixed returns without participating in token sales.
This dual-path approach broadens accessibility while fueling Usual’s TVL growth. The previous pool reached ~$150 million in liquidity — a significant milestone that validated the partnership.
Yoko emphasized smooth rollover operations from the old pool (expired October 31) to the new USD0++ pool, ensuring continuity for existing users. Close coordination with Pendle’s team and community ambassadors helped educate users about Usual’s vision, tokenomics, and roadmap.
TN praised Usual’s team for their execution speed and strategic clarity. “We’re selective with partnerships,” he said. “But Usual stood out — not just for the product, but for the team’s professionalism and sensitivity to market dynamics.”
Introducing USD0++: A New Era of Yield-Enhanced Stability
The newly launched USD0++ pool marks a significant upgrade over its predecessor. Here’s what sets it apart:
- Higher base points: Doubled from 3 to 6 for both YT and LP positions.
- Extended duration: Matures in March 2025, offering longer-term yield stability.
- Improved liquidation ratio: Raised to 97%, reducing risk for leveraged positions.
- Active PT strategy: A $400K initial capital injection was fully utilized within hours, demonstrating strong demand for low-risk yield products.
- Time-locked reinvestment: Ensures capital safety; new funds roll in every 24 hours starting November 29 (European time), with increased allocation.
Additionally, a weekly prize draw is underway, distributing 10 rewards — two already claimed, with more to come through early December.
On Pendle’s homepage, USD0++ consistently ranks among the top three highest-yielding pools — often claiming the #1 spot. This performance underscores growing confidence in Usual’s underlying RWA backing and economic design.
But why “++”? According to Pierre, USD0 is the base stablecoin pegged 1:1 to RWA-backed short-term Treasuries. It doesn’t generate yield by itself. USD0++, however, is the yield-bearing version — staked for four years, allowing 1:1 redemption at TGE. This ensures no depeg risk and protects against bank-run scenarios.
Why Build a New Stablecoin? The Case for RWA and Fair Value Distribution
Pierre highlighted a core issue with incumbent stablecoins: profit centralization. Tether and Circle earn billions from reserve assets but return little to users. Usual flips this model by channeling revenue directly into the protocol treasury — where it funds community incentives and token buybacks.
Key innovations include:
- 90% of tokens allocated to the community, with no hidden allocations.
- Cashflow-backed token issuance: USUAL tokens are only minted when new income enters the protocol.
- Deflationary mechanics: Similar to Bitcoin halvings, early participants receive higher rewards, creating scarcity over time.
Yoko added that USUAL isn’t just a governance token — it’s a value-bearing asset with real economic utility. Its design ensures long-term holders benefit from protocol growth, not just speculation.
👉 See how next-gen stablecoins are redefining value flow
How Does USUAL Token Impact USD0’s Growth?
The relationship between USD0 and USUAL is symbiotic:
- As more users mint USD0 using RWA collateral, interest income flows into the treasury.
- This revenue fuels USUAL token emissions, distributed via staking, liquidity mining, or TGE participation.
- Higher TVL → More income → More token incentives → More adoption.
Crucially, if U.S. Treasury yields decline, Usual adjusts by reducing token minting, preserving per-token value. This dynamic response mechanism protects against external macro shocks — a feature rare in current DeFi models.
TN noted that while many projects rely on unsustainable incentives, Usual’s fundamentals — driven by real asset yields and growing TVL — offer a stronger foundation for long-term price appreciation.
Navigating Competition: Usual’s Path to Market Expansion
With PayPal and other Web2 giants entering the stablecoin race, differentiation is key. Pierre argues that most existing stablecoins fail as payment rails despite their liquidity use.
Usual’s strategy focuses on becoming a decentralized commercial bank:
- Start with yield-bearing stable assets.
- Expand into lending, savings, and cross-border payments.
- Build an ecosystem beyond mere collateral usage.
By bridging traditional finance liquidity with DeFi composability, Usual aims to onboard institutional capital while empowering retail users.
Yoko stressed that while payment functionality is important, it requires scale. For now, DeFi integration — such as using USD0 in various liquidity pools — is the priority. Future plans include launching DAI0, further expanding product offerings.
Frequently Asked Questions (FAQ)
Q: What makes USD0 different from other RWA-backed stablecoins?
A: USD0 combines transparency, community ownership, and yield-bearing design. Unlike passive stablecoins, USD0++ allows users to earn yield directly through staking and participation in DeFi protocols like Pendle.
Q: Is USUAL a good long-term investment?
A: The token is designed for sustainability — backed by real cashflows, deflationary issuance, and community-first distribution. If Usual grows its TVL and expands its ecosystem, USUAL holders stand to benefit from both appreciation and utility.
Q: How does Pendle enhance Usual’s yield offerings?
A: Pendle enables yield tokenization, letting users choose between leveraged exposure (YT) or fixed returns (PT). This flexibility attracts diverse investor profiles and increases liquidity depth.
Q: What happens if interest rates fall?
A: Usual dynamically adjusts token minting to maintain value accrual for holders. Lower yields mean fewer tokens are issued, preserving scarcity and economic balance.
Q: Can I use USD0 for payments today?
A: While primarily used in DeFi applications now, Usual plans to expand into payment infrastructure as adoption grows. The focus remains on building a robust financial ecosystem first.
Q: How can I participate in the USD0++ pool?
A: Visit Pendle Finance and locate the USD0++ pool. You can provide liquidity or purchase PT/YT tokens based on your risk appetite. Keep an eye on the ongoing reward draw for additional incentives.
Final Thoughts: A New Paradigm for Stablecoin Economics
Usual and Pendle represent a powerful convergence of RWA security and DeFi innovation. By combining yield tokenization with community-driven value distribution, they offer a compelling alternative to traditional stablecoin models.
With a transparent treasury, adaptive tokenomics, and strong product-market fit, Usual isn’t just chasing short-term gains — it’s building a sustainable financial layer for the decentralized future.
👉 Explore how RWA and yield strategies are transforming DeFi