Real estate-backed stablecoin USDR lost its peg to the U.S. dollar after a rush of redemptions caused a draining of liquid assets such as Dai (DAI) from its treasury, its project team has revealed.
USDR — backed by a mixture of cryptocurrencies and real-estate holdings — is issued by Tangible protocol, a decentralized finance project that seeks to tokenize housing and other real-world assets.
USDR is mostly traded on the Pearl decentralized exchange (DEX), which runs on Polygon.
An update on $USDR
Over a short period of time, all of the liquid $DAI from the $USDR treasury was redeemed.
This lead to an accelerated drawdown in the market cap.
Combined with the lack of DAI for redemptions, panic selling ensued, causing a depeg.
We’re working on…
— Tangible (@tangibleDAO) October 11, 2023
In an Oct. 11 tweet, Tangible explained that over a short period of time, all of the liquid DAI from the USDR treasury was redeemed, leading to an accelerated drawdown in the market cap, adding:
“Combined with the lack of DAI for redemptions, panic selling ensued, causing a depeg.”
USDR experienced a flood of selling at around 11:30 am UTC, driving its price as low as $0.5040 per coin. It recovered slightly, to around $0.53 shortly afterward.
Despite the coin losing nearly 50% of its value, the project’s developers have vowed to provide “solutions” to the problem, saying it was merely a liquidity issue that has temporarily challenged redemptions.
“This is a liquidity issue,” they
Go to Source to See Full Article
Author: Tom Blackstone
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
