Stablecoin Faces Depegging Issues and Charts a Comeback
A stablecoin that operates on the Polygon (MATIC) layer-2 scaling solution and is backed by real estate assets has faced a significant drop in value after detaching itself from the US dollar (USD).
Tangible, the DAO behind this stablecoin, Real USD (USDR), shared the news in a message on the social media platform X. They acknowledged the setback and outlined their plan to assist affected investors.
Tangible explained that the detachment from the USD occurred when their treasury was depleted of Dai (DAI), a stablecoin that was part of their reserves. This event led to a swift drop in market capitalization, exacerbated by a lack of DAI for redemptions and a liquidation timeline for their real estate assets, which triggered panic selling and, ultimately, the detachment from the USD.
However, Tangible is not giving up. They have plans to build deep liquidity and continue growing their ecosystem for tokenized real-world assets, aiming to deliver off-chain yield efficiently to on-chain users. They emphasized a clear demand for this service.
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Interestingly, Tangible also revealed that Real USD will not be a part of their future plans. They will provide a more detailed analysis of the situation after some reflection. The stablecoin, USDR, will be phased out after completing the redemption process.
This decision comes after they faced vulnerabilities and potential attack vectors in the design of Real USD, which became more apparent as they tried to scale. They expressed concerns about their ability to protect users as they expanded further.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
