A Real Estate-Backed Stablecoin on Polygon Faces Depegging and Value Loss
Tangible, the decentralized autonomous organization (DAO) behind Real USD (USDR), a stablecoin built on Polygon (MATIC), has experienced a significant loss in value after depegging from the US dollar (USD). The depegging occurred when the treasury of Tangible was drained of Dai (DAI), which was part of its reserves. This led to panic selling and a sharp decline in USDR’s market cap, causing its value to drop to around $0.52.
Tangible’s Response and Future Plans
Tangible acknowledges the setback but outlines a plan of action for affected investors. It intends to focus on building liquidity and growing the ecosystem for tokenized real-world assets (RWAs) on-chain. However, Tangible has decided not to include Real USD in its future plans due to vulnerabilities in its design that made it susceptible to attack vectors. Once the redemption process is complete, USDR will be deprecated.
Hot Take: Real Estate-Backed Stablecoins Face Challenges
The depegging and subsequent loss in value of Real USD highlight the challenges faced by stablecoins backed by real estate assets. The reliance on reserves and the potential for vulnerabilities in their design pose risks to their stability and value. While there is demand for tokenized RWAs, ensuring the security and protection of users remains a critical concern for these projects. As the crypto industry continues to innovate, finding robust solutions that address these challenges will be crucial for the success of real estate-backed stablecoins.
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