Why USD0++?

Problem

Many DeFi protocols distribute their revenues directly to users, but this approach often falls short in creating long-term incentives or providing meaningful benefits to early liquidity providers when the protocol succeeds.

For example, Yield-Bearing Stablecoins distribute a significant portion of their underlying revenues when staked. While this benefits users in the short term, it does not offer exposure to the protocol’s growth. Consider a rebase stablecoin that distributes 5% of the collateral’s monetary interest rate. Even if the protocol’s Total Value Locked (TVL) grows by billions, the user’s return remains static—a stablecoin yielding the same 5%.

This model also fails to address the issue of mercenary liquidity, where users move their capital opportunistically to chase higher returns elsewhere. Without mechanisms to foster long-term engagement, such protocols struggle to build sustainable ecosystems, limiting their potential for growth and stability.