Panic! This User Swapped $131k in USDR for $0 USDC Amid Depeg

In just a day after Real USD (USDR) depegged, a user swapped $131,350 worth of the stablecoin for $0 in USDC, in an action that appears like a “fat finger” trade.

A fat finger happens when a user inadvertently uses incorrect transaction details when buying, selling, or transferring digital assets.

According to a user on X (formerly Twitter) on Thursday, someone on the decentralized exchange (DEX) aggregator, OceanSwap swapped $131,000 USDR for $0.0001 USDC. What’s more, the individual paid 0.0012 BNB ($0.25) in gas fees.

Following the stablecoin’s price depeg from $1 to $0.5 on Wednesday, the user may have been panic selling when making the transaction, causing him to suffer such loss.

What Happened to Real USD?

Launched in 2019, USDR is a stablecoin issued by TangibleDAO and is largely backed by real estate assets with a market cap of about $45 million.

According to TangibleDAO’s website, the asset was meant to be the new type of money that will yield around 8-15% per year. However, USDR lost its peg yesterday, leading its price to plummet by 50%.

The Dune analytics dashboard said the stablecoin may have depegged due to a rush of redemptions. The USDR’s collateral was mainly made up of illiquid assets like real estate and liquid assets like DAI. As of October 10, about $11.8 million of DAI that was collateral for the stablecoin has been completely eroded during the redemptions, leaving largely illiquid assets in its wake.

Regarding the user, the blockchain analytics platform Lookonchain wrote on X:

“Due to the decoupling of the stablecoin USDR, this guy accidentally swapped 131,350 $USDR for 0 $USDC while panic selling $USDR”.

To curb panic selling, users and investors are advised to trade carefully, accept the risk of price fluctuations, refocus on the basics, keep a long term perspective, employ the Dollar Cost Averaging strategy (DCA) when making transactions in order to prevent or minimize loss.

After the crash, the stablecoin’s price rebounded from $0.51 to $0.68. Currently, USDR’s price has fallen back to $0.58, according to data from Coinstats.

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