Vladislav Sopov
Tangible’s real USD (USDR) has lost its correlation to the US dollar and is currently trading below $0.6
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Contents
- USDR, a stablecoin backed by RWAs, falls below $0.5
- “Bank Run” Predicted?
Real USD, a Polygon-based stablecoin partially backed by real estate assets in the UK, is currently suffering from significant depegging. The price of USDR collapsed as the team removed Dai (DAI) from its collateral basket.
USDR, a stablecoin backed by RWAs, falls below $0.5
The real USD (USDR) stablecoin, partially backed by hundreds of real estate assets in the United Kingdom, lost its peg to the US dollar today, October 11, 2023. In just three hours, both USDR and its “balance” token TNGBL lost over 50% of their capitalization.
The stablecoin issued by TangibleDAO was backed by a basket of Dai (DAI) stablecoins, altcoins and over 250 real estate assets in the UK. Today, some DeFi users noticed that all Dai (DAI) collateral has been removed: according to the official website, houses are now responsible for 60% of USDR collateral.
Since this part of the balance sheet portfolio is illiquid, USDR users began exchanging their assets en masse. As a result, the price of USDR fell to $0.5 on the Polygon-based DeFi Pearl.
The token gained traction thanks to its use in Aerodrome Finance, a yield farming protocol on the trendy L2 platform Base. Already, the Tangible website offers a yield of over 15% on USDR; Over 60% of these rewards are paid out in TNGBL tokens.
“Bank Run” Predicted?
Before the run, the token was overcollateralized, with a collateralization ratio of 117%. The price of TNGBL, its core balance sheet asset, fell 53% in less than two hours.
Experienced DeFi investor Valentin Mihov already emphasized on September 1, 2023 that the USDR design was too risky. He predicted that a “death spiral” would be inevitable once DAI collateral was removed.
He also noted that the token was already vulnerable to manipulation: a large portion of USDR was minted using TNGBL reserves.
At press time, the TangibleDAO team remained silent about the accident.
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