DeFi User Accidentally Loses $131,350 in Stablecoin Swap
An unfortunate incident occurred in the decentralized finance (DeFi) space when a user accidentally lost a significant amount of money during a swap transaction. The user exchanged $131,350 worth of wrapped USDR (wUSDR) for just $0 in Circle’s USDC stablecoin. To make matters worse, a transaction fee of 0.0012 BNB coins was charged during the swap.
Reason Behind the Mishap: Depegging of USDR Stablecoin
The loss can be attributed to the depegging of the USDR stablecoin from its dollar peg. The user hurriedly sold their USDR in an attempt to recover locked funds, resulting in the unintended swap and subsequent loss.
MEV Bot Takes Advantage of the Situation
An MEV bot seized the opportunity to arbitrage $107,000 during this event.
About USDR Stablecoin and TangibleDAO
USDR is a stablecoin backed by tokenized real estate assets offered by the TangibleDAO blockchain protocol. Holders of USDR can earn passive income from rental revenue generated by these tokenized lands. However, due to a wave of redemptions totaling $11.8 million in Dai, the stablecoin faced a massive sell-off and experienced a depegging from its $1 price peg.
TangibleDAO’s Response and Future Plans
The TangibleDAO team acknowledged flaws in the smart contract design and security protocols of the stablecoin. As a result, they have decided to wind down operations for USDR. To support users, they will liquidate their protocol-owned liquidity (POL) from Pearl and insurance fund assets. Additionally, they will introduce a pool of tokenized real estate called “baskets.” Users will have the option to redeem their USDR for stablecoins, basket tokens, and locked TNGBL (TangibleDAO’s real-world asset).
Hot Take: TangibleDAO Addresses Security Concerns and Offers Redemption Options
TangibleDAO’s decision to wind down operations for USDR highlights the importance of robust smart contract design and security protocols in the DeFi space. By liquidating assets and introducing new options for redemption, they are taking steps to protect their community and investors.
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