In a recent development, the US Dollar Real (USDR) stablecoin lost its peg to the US dollar, causing its value to fall to just $0.5.
TangibleDAO, the entity responsible for USDR, cites the liquidity issue as the reason for the rapid decline in the value of the stablecoin.
TangibleDAO points to the liquidity issue in the US dollar decoupling process
On October 11, the USDR stablecoin lost its peg to the US dollar. Within three hours of this delinking, USDR and its associated balance token, TNGBL, saw a 50% drop in market cap.
USDR was issued by TangibleDAO, was backed by several Dai (DAI) stablecoins and altcoins, and had a portfolio of over 250 properties in the UK.
Update on $ US dollars
This leads to an accelerated drawdown in market value.
Coupled with the lack of DAI for redemptions, panic selling ensued, causing the peg to be cancelled.
We are working on…
— Tangible (@tangibleDAO) October 11, 2023
Following the incident, TangibleDAO responded through a statement on its official account on
TangibleDAO also noted that it is actively working on solutions to address the liquidity issue and restore confidence in the USD stablecoin.
The US dollar falls to $0.5
The incident was revealed when DeFi users noticed that all Dai (DAI) collateral had been withdrawn, with houses now making up 60% of USDR collateral. This shift has prompted USDR users to trade their assets quickly due to concerns about a lack of liquidity in this part of the portfolio. Accordingly, the price The US dollar fell to $0.5.
According to the series Data Provided by TangibleDAO, the USDR-pegged treasury currently holds zero DAI, with a lockup fund of approximately $6.2 million available to cover the $45 million USD circulating supply, with an initial value of $45 million when tied.
In addition to, Data Polygon Block Explorer shows that some traders are unloading USDR into USDC trading pairs for a fraction of its value. Despite the crisis, USDR continues to offer a 16% return on USDR, with more than 60% of these rewards paid out in TNGBL tokens.
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