In an sudden flip of occasions, a decentralized finance (DeFi) consumer by chance misplaced a fortune after he swapped $131,350 in wrapped USDR (wUSDR) for $0 in USDC.
The transaction was initially captured on DeFi and DEX aggregator OpenOcean by X (previously Twitter) consumer @rektfencer.
The DeFi consumer swapped $131,350, equal to roughly $141,729.77 in Real USD’s stablecoin, for a mere $0.0001 in Circle’s USDC.
To compound the difficulty, a transaction price was charged at 0.0012 BNB cash (or roughly $0.25) when the swap was executed.
Providing extra context on the bizarre flip of prevalence, Lookonchain – an on-chain knowledge evaluation platform – accounted the whole state of affairs to the depegging of the USDR stablecoin from its greenback peg.
As a consequence, the DeFi consumer unintentionally executed the swap whereas unexpectedly promoting the USDR in an try and get well locked funds. But this did not end up nicely, because the consumer misplaced their total funds.
Furthermore, a maximal extractable worth (MEV) bot leveraged the occasion to arbitrage $107,000.
USDR is a stablecoin supplied by the TangibleDAO blockchain protocol. It is the world’s first stablecoin collateralized by tokenized, yield-bearing actual property.
The stablecoin has an inbuilt worth accrual system, and holders can earn a constant passive revenue stream from rental income earned from these tokenized lands.
According to the TangibleDAO protocol, USDR holders can get a day by day rebase between 5% to 10% annual p.c yield (APY).
The tokenized real-estate asset was pegged to the US {dollars} and used MakerDAO’s Dai stablecoin as collateral.
However, a big wave of redemptions totaling $11.8 million in Dai left customers holding a bag of illiquid actual property belongings.
With solely the actual property backing the USDR stablecoin, there was a large sell-off of the stablecoin, resulting in a depegging from the $1 worth peg.
The mission stablecoin slipped to $0.51 earlier than rebounding to $0.58 a number of hours later.
However, it has since dipped to $0.5351 at press time.
Speaking on the crypto run-on-bank, the TangibleDAO crew stated that the stablecoin good contract had too many assault vectors in its design, and the safety protocols meant to guard customers might be simply manipulated.
“We can protect our users at the current size, but as we continue scaling, it may have become impossible. We’ve always done our best to protect our community and investors. In this case, it’s unwinding USDR for the good,” TangibleDAO said.
Way Forward: POL and Insurance Fund Assets
While USDR is winding down its operations, the TangibleDAO crew isn’t leaving its customers hanging.
Providing particulars on the subsequent motion, the crew stated it might be liquidating its protocol-owned liquidity (POL) from Pearl and its insurance coverage fund belongings. It may also launch a pool of tokenized actual property referred to as “baskets.”
For now, the decentralized autonomous group (DAO) protocol has roughly 2.44 million in Dai, USDC, and USDT gained from burning (everlasting token elimination) of its USDR.
Users will be capable of redeem their USDR for stablecoins, basket tokens, and locked TNGBL (TangibleDAO’s real-world asset) on a 3 to three foundation in the close to future.
