TangibleDAO, the creator of the real estate-backed USDR stablecoin, has announced that it will discontinue the project after it depegged on October 11. The decision was made due to the numerous attack vectors in the stablecoin’s design and the ease with which measures to protect users could be manipulated. The team plans to deprecate the stablecoin once it completes the redemption process, which will involve utilizing its Protocol Owned Liquidity (POL) and Insurance Fund Assets. Additionally, TangibleDAO will introduce a tradable Basket containing tokenized real estate assets. The depegging of USDR occurred because the stablecoin’s treasury used illiquid assets, such as real estate, to back it. Despite being fully backed by the DAI stablecoin and real estate, TangibleDAO was unable to meet users’ redemption demands, leading to a panic-driven sell-off. The illiquid nature of the real estate assets, which were tokenized in ERC-721 rather than ERC-20, made it challenging to fractionalize and trade them. This situation highlights the importance of not relying on illiquid assets to back liquid ones and the need to tokenize illiquid assets using the ERC-20 standard to enhance tradability.

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Information	Details
Geography	Global
Countries
Sentiment	negative
Relevance Score	1
People	Tom Wan
Companies	21Shares, TangibleDAO, ERC-20, DAI, X, ERC-721
Currencies	Dai
Securities	None