Tangible’s USDR Dilemma

Tangible, an ecosystem for tokenized real-world assets, was negatively affected by the devaluation of its stablecoin, real USD (USDR).

The stablecoin is a native-yield stablecoin backed by real estate. However, Tangible disclosed that there was “an accelerated drawdown in the market cap, combined with the dearth of DAI for redemptions; panic selling ensued, resulting in a depeg.”

According to CoinMarketCap, the price of USDR at the time of writing was $0.5238, representing a decrease of 46.0% over the previous twenty-four hours.

This was a liquidity issue, according to Tangible; the real estate and digital assets underlying the stablecoin still exist and will be used to support redemptions.

Tangible disclosed how they intend to redeem the USDR price but added that “the future will not contain real USD.” They said:

“Tangible’s future will not include Real USD. We’ll share a full post-mortem once we’ve had a chance to unpack the last 24 hours. USDR will be deprecated once the redemption process shared above is complete.”

As part of its action plan to resolve this issue, Tangible intended to liquidate as much of the insurance fund as feasible.

In addition, they claimed that the USDR is 84% collateralized, that the USDR has been burned, and that they have approximately $2.4 million left in protocol-owned stables such as DAI, USDC, and USDT.

The second stage of the action plan was the introduction of baskets, which are pools of tokenized real estate.

They added that baskets will play a crucial role in the second step of the redemption process.

After the baskets are deployed, US dollars will be redeemable for stablecoins, basket tokens, and locked TNGBL 3,3+ NFTs. Tangible disclosed that a slight difference in US dollar collateralization between baskets and stablecoins is anticipated.

They stated, “Any remaining void will be filled with TNGBL 3,3+ priced at the market rate and secured for one year.”