Polygon Based, Real Estate-Backed Stablecoin Real USD (USDR) Has Just Depeged to .60, Dropping 40% in Minutes
2 min read
Issued by TangibleDAO, Real USD (USDR) is the world’s first stablecoin collateralized by tokenized, yield-producing real estate. USDR has its own value accrual system built into its design, differentiating it from other currencies. It lives on the Polygon blockchain.
Just 30 minutes ago, there was a massive depeg of USDR, dropping ~40% in minutes down to .60. Trouble had been brewing all day today, with USDR trading below peg after its DAI reserves got depleted and caused a basic bank run on the system. It has since dropped to .51 as of 11:52am EST.
Right now, it is too early to speculate the exact cause or why the treasury ran out of DAI, which is supposed to be redeemable 1:1 with USDR. Obviously, the recommendation if you’re holding USDR is to get out of that position NOW. There is currently 0 DAI in the backing, and the rest is illiquid real estate and insurance funds. There is only 7M immediate exit liquidity available for 67M USDR. SMH
And just like every time something like this happens, there’s going to be some folks getting rekt, and enough collateral damage to go around.
Like this dude who swapped 130,000 USDR for 0.0001 USDC. God Damn.
The stablecoin is now undercollateralized if you exclude the project’s native TNGBL token, according to its DUNE dashboard. If you include this token, it has a collateralization ratio of 102%.
The stablecoin’s own dashboard also claims that some of the USDR is backed by, well, USDR. It lists 62,810 USDR as collateral for itself.
Also, let the record show that USDR was offering some APRs as high as 20%.. Stay safe out there fam.
submitted by /u/conceiv3d-in-lib3rty
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