Tangible, a project which claims to offer the “first stablecoin backed by tokenized, yield-generating real estate,” experienced a significant crash in its Real USD (USDR) stablecoin.
Tangible's USDR Exchange Rate Dropped By 50%
Tangible, a project which claims to offer the “first stablecoin backed by tokenized, yield-generating real estate,” experienced a significant crash in its Real USD (USDR) stablecoin after a wave of DAI redemptions left the coin with illiquid reserves. Approximately $12 million worth of DAI was redeemed against USDR, causing the coin's value to drop by 50% within hours.
Tangible tokenizes real estate, gold, watches, and wine while providing users with exposure to the assets via its yield-bearing USDR token.
With 60% of USDR backed by real estate, the token is currently trading at $0.528, after dropping to a low of $0.51, according to CoinMarketCap data. Tangible has addressed the situation, saying that it was a “liquidity issue” and the real estate and digital assets will be used to support redemptions.
Tangible has since released a plan of action to make affected users whole. This includes using the redeeming and liquidating the protocol owned liquidity (POL) and insurance fund, launching tokenized real estate pools and allowing users to redeem USDR against these assets. The team also clearly stated that “Tangible’s future will not include Real USD.”
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