Question 1

What is Real USD (USDR) v1?

Accepted Answer

Real USD (USDR) v1 was the initial iteration of a stablecoin developed by Tangible, designed to maintain a 1:1 peg with the US dollar. Launched on the Polygon (MATIC) blockchain, USDR v1 aimed to provide stability and yield generation by being backed primarily by tokenized real estate assets. The underlying concept was to combine the stability of real-world assets with the efficiency of blockchain technology.​

Question 2

What was Real USD (USDR) v1 used for?

Accepted Answer

Stable Medium of Exchange: USDR v1 was intended to function as a stable digital currency for transactions within the Tangible ecosystem and the broader DeFi space.​

* **Yield Generation:** Holders of USDR v1 could stake their tokens to earn yields derived from the rental income of the backing real estate properties. This mechanism provided a native real yield to stakers through daily rebases.​

* **DeFi Integration:** USDR v1 was designed for integration into decentralized finance platforms, enabling activities such as lending, borrowing, and liquidity provision.​

Question 3

Challenges and Transition to v2

Accepted Answer

Despite its innovative approach, USDR v1 encountered challenges related to liquidity and collateral management. In October 2023, a series of DAI redemptions led to a significant depegging event, with USDR's value dropping by 50% within hours. This incident highlighted the risks associated with backing a stablecoin primarily with illiquid real estate assets.​

In response to these challenges, Tangible introduced USDR v2, incorporating improved collateralization strategies and yield mechanisms to enhance stability. Despite these efforts, USDR continued to face challenges, leading to further depegging incidents.