The Real Estate-Backed Stablecoin USDR Sees Significant Deviation from Its Peg

According to CoinGecko data, USDR (Real USD) has severely deviated from its peg, currently trading at $0.54, and it has been unpegged for over 20 hours.

USDR, issued by TangibleDAO on the Polygon network, is a stablecoin anchored to the US dollar and backed by real estate. According to its whitepaper, USDR can be redeemed for DAI at a 1:1 ratio. USDR tokens are issued by over-collateralizing real estate and distributing the earnings to token holders to offset the depreciation of its pegged currency, thus achieving the tokenization of real estate.

The USDR Treasury Depletes Its DAI Reserve Fund

According to the official website data, as of early morning on the 11th, the Tangible stablecoin USDR's treasury still holds 11.87 million DAI in reserve, which has now been depleted. In the past 24 hours, users have redeemed tens of millions of USDR and exchanged them for assets with higher liquidity, such as DAI and TNGBL, for selling. This has led to a halving of TNGBL's price, currently trading at $3.24 USDT, and subsequently resulted in a reduction in the reserves. USDR briefly deviated from its peg, dropping to $0.5 USD.

TangibleDAO Announces Action Plan to Address USDR Depreciation Issue

Recently, due to a significant redemption of liquidity DAI from the USDR treasury, the market value rapidly declined, coupled with the complexity of the real estate liquidation process, which led to panic selling and the unpegging of the token. TangibleDAO's action plan includes:

• Utilizing the protocol's own liquidity (POL) and insurance fund assets to support USDR. Currently, USDR's collateralization rate is 92.9%, and they plan to continue supporting redemptions with the protocol's stablecoins (DAI, USDC, USDT).

• Introducing Baskets, which are asset pools tokenized by real estate, playing a crucial role in the USDR redemption process. Users can choose to hold these real estate-backed tokens and collect earnings through rebase or sell them on Pearl.

• Enabling redemptions, where USDR can be fully exchanged for stablecoins, Basket pool tokens, and locked TNGBL 3.3+ NFTs.

TangibleDAO emphasizes that it will no longer include Real USD in its future plans and commits to deprecating USDR once the above redemption process is complete.