Real USD, a stablecoin based on Polygon that is partially backed by UK real estate, is now experiencing a significant de-pegging. As soon as the team took Dai (DAI) out of its collateralization basket, the price of USDR fell.
Real USD (USDR) stablecoin, partially backed by hundreds of real estate assets in the United Kingdom, slips below $0.5 Today, October 11, 2023, the stablecoin lost its peg to the U.S. dollar. Both USDR and its “balance” token TNGBL lost more than half of their capitalization in under three hours.
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The $1 peg for Polygon’s Stablecoin USDR is lost.,The $1 peg for Polygon’s Stablecoin USDR is lost.,The $1 peg for Polygon’s Stablecoin USDR is lost.
The stablecoin, which was released by TangibleDAO, was supported by more than 250 real estate items in the UK as well as a basket of Dai (DAI) stablecoins and altcoins. According to its official website, residences currently account for 60% of USDR collateral, yet several DeFi users discovered today that the whole Dai (DAI) collateral was deleted.
Since this portion of the balance portfolio is illiquid, USDR holders began selling off large quantities of their holdings. Consequently, USDR’s price on Polygon-based DeFi Pearl fell to $0.5.
Was a “bank run” expected? The token had an excessively high collateralization ratio—117%—prior to the run. In less than two hours, the price of TNGBL, its primary balance asset, fell by 53%.
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On September 1, 2023, seasoned DeFi investor Valentin Mihov emphasised that USDR design was extremely dangerous. Once DAI collateral is eliminated, he said, a “death spiral” is unavoidable.
Furthermore, he saw that the token was already susceptible to manipulation because TNGBL reserves were used to create a sizable amount of USDR. The TangibleDAO team has not commented on the incident as of the time of publication.
The $1 peg for Polygon’s Stablecoin USDR is lost.,The $1 peg for Polygon’s Stablecoin USDR is lost.,The $1 peg for Polygon’s Stablecoin USDR is lost.