Author: Brother BroLeon of Tu'ao Source: X, @BroLeonAus

Today's $Usd0++ unanchored After looking around, let me tell you something.

First of all, this unanchoring originated from an official announcement issued by @usualmoney today. The USD0++ withdrawal that has been said before will be charged a fee (Usual), starting from February Officially starts on the 1st. Moreover, the official has proposed a new specific value, which is to provide a guaranteed minimum price of 0.87:1 for USD0++ exit.

Under the background and panic interpretation of running faster after seeing the announcement, it led to Sudden unanchoring.

A brief summary of the process:

Previously, Usd0++ set up a comparison in order to make it easier for everyone to accept. A long period of white prostitution. It was blind mining at first, and then the team gave an unconditional 1:1 exit guarantee before listing on Binance. It's equivalent to holding a stable currency in a mine with an annualized rate of 50%+, so a large amount of funds are exchanged for USD0++, and you can even use Morpho to increase the capital efficiency through revolving loans and enjoy it.

However, as the project progresses, the project side announced that it will cancel the free prostitution treatment. Fees will start on February 1, and the specific amount has not yet been announced. So the mining people began to retreat. Those who ran early could lose less than those who ran late, and many people had high leverage. If they did not sell in time to increase the collateral, they might be liquidated, so it triggered a wave of smashing Usd0++ To the trend of Usd0.

In fact, the withdrawal fee is not sudden. The project team has long said that it is just that everyone is betting on the last bite of meat.

In addition, the official announcement wrote a support for the 0.87 exchange rate. The original intention may be good, indicating that the 0.87 bottom is just above Morpho's 0.86 liquidation line. Because as a 4-year convertible bond, even if it fluctuates to 0.1 in the middle, it cannot actually be considered a breach of contract (but it will definitely greatly harm the user base). However, the market interpretation is that the official may allow the exchange rate to fall by 13 points, triggering Further panic selling.

Then media reports and big V remindersPosts about the risk of anchoring also caused many people to flee. It is appropriate to remind people of risks. After all, there are lessons learned from LUNA. Who dares to say that there is no risk at all? But I think Usual hasn’t reached that level yet.

At present, we can see that there are large players in the market who are buying the low exchange rate. 0.93 is at a game point, waiting for panicked people to run away. What will happen next? It should get better.

Reason:

1. The project party has not yet announced the price of conditional withdrawal. That is how much $Usual you need to burn for 1:1 exchange, which will be announced early next week. If the final announced result is that only 1% needs to be burned, then the current 7% anchor will be immediately equalized to 99%.

2. After the burning starts, the currency price of $Usual will be directly empowered, which is a real benefit to UsualX and $Usual holders.

3. With the withdrawal of prostitutes, the income of Usd0++ holders has been improved. And as long as the USD0++ yield meets or exceeds the standard risk-free rate, holding until maturity is still more profitable than selling for less than $1. To put it simply, even if you take a step back and consider it as a 4-year financial management project, the maturity return will be considerable (if the project does not fail after 4 years).

Today's unanchoring is an inevitable test in the transition of project development stages, but it seems that it is still within the plan and control of the project party. I have not cut the flesh myself. And the leverage ratio in Morpho is very low, so I don’t have to worry too much. Cutting meat when market sentiment is at its highest is often proven wrong later.