Stablecoin USDR Loses Peg As Its DAI Reserve Redeemed Rapidly

Over 50% of USDR stablecoin’s reserve was backed by DAI which got redeemed in a short period of time.

Published on - October 12, 2023 17:10

Updated on - October 12, 2023 18:18

1 minute read

Real USD (USDR), a stablecoin backed by tokenized real estate, has lost its peg to dollar and fell to nearly $0.5 on Wednesday.

The depegging of USDR is a direct result of massive redeeming of its DAI reserve that accounted for up to 50% of total stablecoin’s downtrend.

According to the issuer of USDR – TangibleDAO, the liquid DAI reserve for the stablecoin is fully redeemed from the treasury in a short period of time.

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

As DAI reserve was the major backing, it prompted a sharp cut in the USDR market. Another factor which led to depegging is panic sell-off due to lack of DAI redemptions.

Real USD (USDR) has a current market cap of approximately $24 million across multiple chains including Polygon, Ethereum, Arbitrum, Optimism, BNBChain and Base, according to data from Coinmarketcap.

Following the depeg, TangibleDAO has announced plans to recover dollar-peg by using protocol owned liquidity and liquidating insurance funds.