During a recent fluctuation in USDR’s value, a transaction involving 131k stablecoins yielded no return for the trader.
Following the startling revelation from yesterday’s events surrounding the real-estate-backed U.S. dollar stablecoin, Real USD (USDR), a trader encountered a grave setback by swapping a staggering 131,350 USDR for 0 USD Coin (USDC). This unfortunate event reflects the high-risk nature of decentralized exchanges (DEXs) and the looming vulnerabilities of asset-backed tokens.
The data, sourced from the prominent blockchain analytics firm Lookonchain, highlighted that the swap took place on the BNB Chain via the decentralized exchange, OpenOcean. This transpired during a tumultuous period when USDR had decoupled from its pegged value, plummeting by almost 50% due to a liquidity crisis.
In a savvy move, a maximal extractable value (MEV) bot detected the disparity, capitalizing on it to achieve a whopping $107,002 in arbitrage profits.
These vulnerabilities are not unprecedented in the crypto world. Last year, a trader navigating the Uniswap DEX V2 had a similar encounter, selling $1.8 million of Compound USD (cUSDC) but receiving a mere $500 in assets. The MEV bot, which initially profited over $1 million from the misfortune, was later hacked.
However, the crisis that engrossed USDR on October 11 offers a unique perspective on the challenges of tokenized assets. Despite USDR’s claims of being fully backed, an analysis revealed that a mere 15% of its $45 million in assets were underpinned by the liquid project token,
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Author: Bralon Hill
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