Polygon's Stablecoin USDR Loses Its Peg to $1

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Polygon's Stablecoin USDR Loses Its Peg to $1
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Real USD (USDR) by Tangible has lost its correlation with U.S. dollar, currently trading below $0.6

Real USD, a Polygon-based stablecoin partially backed by real estate objects in the U.K., is suffering a major de-pegging right now. The price of USDR collapsed once the team removed Dai from its collateralization basket.Real USD stablecoin, partially backed by hundreds of real estate objects in the United Kingdom, lost its peg to the U.S. dollar today, on Oct. 11, 2023. In just three hours, both USDR and its"balance" token TNGBL lost over 50% of their capitalization.

As this part of the balance portfolio is illiquid, users of USDR started exchanging their assets en masse. As a result, on Polygon-based DeFi Pearl, the price of USDR dropped to $0.5.The token gained traction thanks to its usage in Aerodrome Finance, a yield farming protocol on trending L2 platform Base. Even now, Tangible website offers over 15% yield on USDR; over 60% of these rewards are paid in TNGBL tokens.

Veteran DeFi investor Valentin Mihov stressed that USDR design was too risky back on Sept. 1, 2023. He predicted that a"death spiral" is inevitable once DAI collateral is removed.Also, he noticed that the token had already been vulnerable to manipulations: a large portion of USDR was minted via TNGBL reserves.Shibarium and BONE Listed on Turkish Crypto Platform, Bitcoin Might Meet 'Key Pivot Point' on Nov.

Shibarium and BONE Listed on Turkish Crypto Platform, Bitcoin Might Meet 'Key Pivot Point' on Nov. 21, Ripple Keeps Moving Millions of XRP to Bitstamp: Crypto News Digest by U.TodayEthereum Price May Hit $8,000: Banking Giant Standard Chartered Shibarium and BONE Listed on Turkish Crypto Platform, Bitcoin Might Meet 'Key Pivot Point' on Nov. 21, Ripple Keeps Moving Millions of XRP to Bitstamp: Crypto News Digest by U.Today

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