December 22, 2024
Trader swaps 131k stablecoins for alt=

Amid yesterday’s crisis with real estate-backed U.S. dollar stablecoin Real USD (USDR), one trader appeared to have exchanged 131,350 USDR for $0 tokens (USDC), resulting in a complete loss of investment.

According to reports on October 12 Report According to data from blockchain analytics company Lookonchain, the swap was conducted on the BNB chain through the decentralized exchange OpenOcean at a time when USDR was nearly 50% decoupled from its par value due to a liquidity crunch. The Maximum Extractable Value (MEV) bot subsequently discovered the discrepancy and made a total profit of $107,002 through the arbitrage trade.

During periods of poor liquidity, DEX slippage can be as high as 100%. In September 2022, Cointelegraph reported that a trader tried to sell $1.8 million in Compound USD (cUSDC) through Uniswap DEX V2, but only received $500 worth of assets in return. In this incident, MEV also engaged in an arbitrage trade before more than $1 million in profits were clawed back. Hacked Just a few hours later.

On October 11, USDR decoupled after users requested redemptions of more than 10 million stablecoins. Despite being 100% backed, less than 15% of its $45 million in assets at the time was backed by the liquid project token TNGBL, with the remainder being backed by illiquid tokenized real estate assets.

As analyst Tom Wan said, tokenized assets are minted according to the ERC-721 standard and cannot be divided to create liquidity for investor redemption. Additionally, the subject home cannot be sold immediately to satisfy the investor’s withdrawal requirements. All in all, real U.S. Treasury bonds were unable to meet redemption requests, leading to a collapse in investor confidence.

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