Yield Generating Stablecoin USDR Loses Peg As Its DAI Reserve Redeemed Rapidly
A stablecoin backed by tokenized real estate called Real USD (USDR) has lost its peg to the dollar and dropped to about $0.5 on Wednesday.
The enormous redemption of its DAI reserve, which constituted up to 50% of the backing for all stablecoins, is what caused the depegging of USDR.
The liquid DAI reserve for the stablecoin, according to USDR – TangibleDAO’s issuer, is quickly entirely redeemed from the treasury.
Since the DAI reserve served as the main support, the USDR market experienced a significant decline. The panic sell-off caused by a paucity of DAI redemptions is another factor that contributed to depegging.
According to data from Coinmarketcap, Real USD (USDR) currently has a market cap of around $24 million over a number of chains, including Polygon, Ethereum, Arbitrum, Optimism, BNBChain, and Base.
After the depeg, TangibleDAO declared that it would use protocol-owned liquidity and insurance fund liquidation to restore the dollar peg.
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