Deep Dive
1. Liquidity Engineering (Mixed Impact)
Overview: On 14 August 2025, Usual launched a Uniswap V4 pool with Bunni V2 hooks to auto-rebalance liquidity between USD0++’s $0.92 floor and $1 peg. This removed liquidity below $0.92 while clustering it near current prices.
What this means: While designed to defend the floor, the transparency about the $0.92 support level might have encouraged tactical selling just above it. The 24h trading range ($0.917–$0.922) shows price gravitating toward this engineered floor.
What to watch: Whether the $0.91731 Fibonacci swing low (14 August baseline) holds as support.
2. Technical Pressure (Bearish)
Overview: USD0++ trades below all key moving averages (7-day SMA: $0.921, 30-day SMA: $0.925), with RSI-7 at 38.95 nearing oversold levels. The MACD histogram shows minimal bullish momentum at +0.0000038.
What this means: Technical traders likely interpret the sustained sub-SMA prices and weak momentum as confirmation of the bearish trend, creating self-reinforcing selling near local tops. The 200-day SMA at $0.945 now acts as a distant resistance ceiling.
3. Yield Migration (Bearish)
Overview: Since July 2025, Usual launched multiple vaults (TAC, uSYRUP++) offering 4–8% APY versus USD0++’s implicit yield via price appreciation to $1 (theoretical 8.7% if redeemed at par).
What this means: With USD0++ stuck below $0.92, its effective yield trails newer vaults, prompting holders to rotate into higher-yield options. This creates consistent sell pressure as users exit USD0++ positions to farm elsewhere.
Conclusion
USD0++’s decline reflects a combination of tactical liquidity shifts, technical breakdowns, and yield-seeking capital rotation – all amplified by its unique price/yield mechanism. While the engineered $0.92 floor provides near-term support, sustained recovery likely requires either vault yields to compress or clearer paths to peg reconvergence.
Key watch: Can daily close hold above $0.917 Fibonacci level, or will breakdown trigger algorithmic liquidity withdrawal?