– A trader swapped 131,350 USDR for 0 USD Coin (USDC) during the crisis on Oct. 11 involving real-estate-backed U.S. dollar stablecoin Real USD (USDR).
– The swap occurred on the BNB Chain through the decentralized exchange (DEX) OpenOcean.
– The swap happened when USDR depegged from its par value by nearly 50% due to a liquidity crunch.
– A maximal extractable value (MEV) bot took advantage of the discrepancy and made $107,002 in profits through an arbitrage trade.
– During periods of poor liquidity, slippage on DEXs can reach as high as 100%.
– The Real USD treasury could not meet the redemptions because less than 15% of its assets were backed by liquid TNGBL tokens and the remaining assets were backed by illiquid tokenized real-estate assets.
– The tokenized assets were minted on the ERC-721 standard, which could not be fractionalized to create liquidity for investor redemptions.
– The underlying homes could not be immediately sold to meet investors’ withdrawal requests.
– USDR depegged after users requested over 10 million stablecoins in redemptions.
– The collapse in investors’ confidence led to the depegging of USDR.
Source: [Trader swaps 131K stablecoins for $0 during USDR depeg](https://coinpostman.com/news/trader-swaps-131k-stablecoins-for-0-during-usdr-depeg)
