Real Estate-Backed US Dollar Stablecoin Built on Polygon Loses 47% of Its Value After Suffering Serious Depeg
A stablecoin built on layer-2 scaling solution Polygon (MATIC) and backed by real estate assets has lost nearly half of its value after depegging from the US dollar (USD).
In a lengthy message on the social media platform X, Tangible, the decentralized autonomous organization (DAO) behind Real USD (USDR), says that the crypto asset has suffered a setback but lays out a plan of action to help afflicted investors.
According to Tangible, the depegging occurred after its treasury was drained of Dai (DAI), a stablecoin that was part of its reserves.
“As we’ve all seen, USDR has suffered a serious depeg. Over a short period of time, all of the liquid DAI from the treasury was redeemed. This led to an accelerated drawdown in the market cap. Combined with the lack of DAI for redemptions, and liquidation timeline on real estate, panic selling ensued, causing a depeg.”
However, Tangible says that it has plans to eventually put USDR – which fell to a low of around $0.52 after its depeg – on the backburner.
“The [plan] we’ve established works at building deep liquidity and we’ll continue growing this ecosystem for tokenized RWAs (real-world assets). There is clear demand for the efficient delivery of off-chain yield to on-chain users and we’ve become experts in this process.
That said, Tangible’s future will not include Real USD. We’ll share a full post-mortem once we’ve had a chance to unpack the last 24 hours. USDR will be deprecated once the redemption process shared above is complete. We tried something novel with Real USD, but there were too many attack vectors in the design.
Elements put in place to protect the customer were too easily manipulated to attack the protocol. We can protect our users at the current size, but as we continued scaling, it may have become impossible.”
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Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
