USDR Stability Wavers as Real Estate Collateral Dwindles: Insights into De-Pegging After Treasury Depletion

The available on-chain data strongly suggests that the USDR's treasury has been significantly depleted of its liquid assets, leading to a swift and notable depreciation in the stablecoin's value.

USDR, a stablecoin functioning on the Polygon network and backed by tangible real estate assets, witnessed a drastic reduction in its value, dropping to nearly $0.51 in just a few hours after its DAI reserves were completely emptied.

Tangible DAO, the overseeing entity for USDR, has made public, through on-chain data, that the treasury presently holds no remaining DAI. The sole remaining liquid asset is an insurance fund amounting to approximately $6.2 million, providing support for a circulating supply of 45 million USDR. When fully pegged, this equates to $45 million.

Furthermore, the treasury is additionally supported by the TNGBL token. However, data sourced from CoinGecko indicates that the total trading volume of the token in the last 24 hours is less than $300,000. Additionally, its bid depth on UniSwap is less than $5,000, making it unfeasible for substantial-scale liquidation.

A review of the Polygon block explorer uncovers instances of traders conducting exchanges of USDR in USDC trading pairs at fractions of its nominal value.

The official website of USDR touts an impressive 16% yield for participants.

Read more: Polygon-Integrated USDC: Circle's Latest Leap