Real estate-backed stablecoin USDR experienced a significant drop in value, falling to $0.53 per coin on October 11. The project team attributed this to a liquidity issue caused by a rush of redemptions, which drained liquid assets from its treasury. USDR is backed by a combination of cryptocurrencies and real estate holdings and is issued by the Tangible protocol. The coin is primarily traded on the Pearl decentralized exchange (DEX) on the Polygon network. Despite the loss in value, the team assured users that the real estate and digital assets backing USDR still exist and will be used to support redemptions. The project’s developers are working on finding solutions to address the liquidity issue. The coin’s collateral consists of Tangible (TNGBL) tokens and real-world housing, as well as an insurance fund. Stablecoins, which are designed to maintain a peg to a specific value, can sometimes lose their peg during extreme market conditions.
