Real USD (USDR) has recently faced a depegging event, currently valued at $0.55. The team attributes this to a panicked redemption of DAI in collateral, assuring that the long-term stability of the coin remains intact.
Let’s take a look.
Design
USDR is an over-collateralized stablecoin pegged to the US dollar and backed by income generating tokenized real estate. Designed to withstand inflation, it is prepared to deliver a yield in the range of 8-15% APY. USDR’s foundation is real estate, primarily rental housing, which acts as a collateral and a steady stream of income.
Collateral
50-80% Tangible real estate NFTs: Tokenized, yield-generating real estate is the core foundation of USDR. As the USDR market cap grows, the allocation to real estate will proportionally increase, ensuring backing while maintaining liquidity for redemptions.
20-30% DAI: Serving as a key component, DAI ensures smooth redemptions and maintains USDR’s peg stability.
20-30% Protocol-owned liquidity: Providing liquidity on the Pearl Exchange on Polygon, the treasury maintains deep liquidity, allows for seamless Real USD swaps with minimal slippage.
0-10% TNGBL: TNGBL can be used to mint Real USD at a 1:1 ratio in restricted amounts. The TNGBL backing will never exceed 10% of the market cap of USDR.
5-10% insurance fund: A protection mechanism that ensures that even if up to 10% of the USDR is minted with TNGBL, a steady $1 DAI redemption value is maintained.
Current collateral status
Real estate: 78.5%
TNGBL: 13.89%
Insurance fund: 4.45%
Most of the collateral is within Tangible’s issued tokens, including the Tangible Real Estate NFTs, centralizing asset backing primarily in Tangible’s offerings.
TNGBL token
TNGBL as governance token: TNGBL orchestrates the governance of the Tangible Marketplace and participates in the minting of USDR.
Minting with TNGBL: The use of TNGBL in the minting process is limited, protecting the ecosystem from a disproportionate influx of TNGBL and maintaining a balanced overcollateralization.
Smart contract
ERC20 standard: Embracing the ERC20, USDR complies with with prevailing token standards and interoperability.
Minting and burning: Defined roles within the contract manage the minting and burning of USDR tokens, ensuring a safeguarded and organized procedure.
ERC4626 Tokenized Vault Standard: USDR incorporates the ERC4626, a standard crafted to optimize and streamline the technical aspects of yield-bearing vaults. This integration establishes a functional connection between USDR tokens and the underlying vault assets.
Upgradeability: The USDR contract operates in an upgradeable system, enhancing adaptability. It introduces additional complexity requiring consideration of potential security vulnerabilities, as the logic can be changed without knowledge of asset holders.
Specializing in digital asset analysis, our team is closely monitoring USDR’s situation.
