Real USD (USDR), a stablecoin based on the Polygon blockchain and initially pegged to the US dollar, has lost its peg, sending its value dropping to $0.54 at the time of writing.
The loss of the peg means that the USDR is no longer maintaining a one-to-one value relationship with the US dollar.
This coin was originally backed by another devalued token and a treasury that relied on a small insurance fund.
As the Treasury depleted its holdings of DAI tokens in an effort to retain the $1 peg, USDR’s value dropped to around $0.51. Currently, the Treasury has approximately $6.2 million in its insurance fund.
However, with 45 million USDR coins in circulation, a total value of $45 million would be needed to sustain the $1 peg.
The treasury also sought support from the native Tangible token (TNGBL), but it has experienced a significant 45% decline in the past 24 hours, with its price falling to $3.82.
According to on-chain data released by Tangible DAO, the entity behind USDR, the treasury now holds zero DAI tokens, leaving the stablecoin’s future uncertain.
In early May 2022, the crypto world witnessed a dramatic turn of events when terraUSD (UST), a stablecoin with an initial market cap of $18 billion and designed to keep a stable $1 peg, faced significant turbulence. The stablecoin, meant to provide price stability, encountered a sharp drop in value, dropping to 35 cents by May 9.
