A stablecoin built on layer 2 scaling solution Polygon (MATIC) and backed by real estate assets has lost almost half of its value after depegging from the US dollar (USD).
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According to Tangible, the depegging occurred after the treasury of Dai (DAI), a stablecoin that was part of the reserves, was emptied.
“As we have all seen, USDR has undergone a serious depeg. In a short time, all liquid DAI from the treasury was redeemed. This led to an accelerated decline in market capitalization. Combined with the lack of DAI for redemptions and the liquidation timeline for real estate, panic selling ensued, causing a bottom.”
However, Tangible says it plans to eventually put the USDR – which fell to a low of around $0.52 after the depeg – on the back burner.
“The [plan] we have initiated work to build deep liquidity and we will continue to expand this ecosystem for tokenized RWAs (real-world assets). There is a clear demand for the efficient delivery of off-chain revenue to on-chain users and we have 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 past 24 hours. USDR will terminate once the redemption process described above has been completed. We tried something new with Real USD, but there were too many attack vectors in the design.
Elements put in place to protect the client could be too easily manipulated to attack the protocol. We can protect our users at the current size, but as we continued to scale, it may have become impossible.”
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Featured image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
