Someone Accidentally Swaps $131,350 in USDR for $0 in USDC on OceanSwap
On Wednesday, the stablecoin known as Real USD (USDR) depegged from its $1 value. The following day, someone made a possible “fat finger” trade on OceanSwap, a decentralized exchange and DeFi aggregator. This user swapped 131,350 wUSDR tokens for less than $0.0001 in USDC and paid $0.25 in gas fees.
It is speculated that this incident occurred due to panic selling triggered by the depegging of USDR. Lookonchain tweeted about the accidental swap and noted that an MEV bot successfully arbitraged $107K in the process.
The Collapse of USDR
Dune analytics dashboard indicates that redemptions caused USDR to lose its peg. The stablecoin, backed by real estate assets, experienced a rush of redemptions resulting in $11.8 million worth of DAI collateral being eroded. As a result, illiquid assets remain.
After the initial crash, USDR’s price briefly rebounded but has since fallen back down to $0.53. CoinGecko reports a market capitalization of $40.9 million for USDR as of October 12.
Hot Take: A Costly Mistake with Serious Consequences
This incident serves as a cautionary tale for crypto traders and highlights the potential risks associated with panic selling during unstable market conditions. Accidental trades can have severe financial consequences, as demonstrated by the loss of $131,350 in USDR in exchange for $0 in USDC. It also raises questions about the stability and reliability of certain stablecoins like USDR when faced with redemption pressures and illiquid assets.
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