Fun

News Feed - 2023-10-13 01:10:00

Zhiyuan Sun8 hours agoTrader swaps 131K stablecoins for $0 during USDR depegAn attempt to withdraw USDR stablecoins amid a liquidity crunch appears to have gone horribly wrong.2153 Total views33 Total sharesListen to article 0:00NewsJoin us on social networksDuring the crisis on Oct. 11 involving real-estate-backed U.S. dollar stablecoin Real USD (USDR), a trader appears to have swapped 131,350 USDR for 0 USD Coin (USDC), resulting in a complete loss on investment.


According to the Oct. 12 report by blockchain analytics firm Lookonchain, the swap occurred on the BNB Chain through the decentralized exchange (DEX) OpenOcean, at a time when USDR depegged from par value by nearly 50% due to a liquidity crunch. A maximal extractable value (MEV) bot subsequently picked up the discrepancy, netting a total of $107,002 in profits through an arbitrage trade. 


During periods of poor liquidity, slippage on DEXs can reach as high as 100%. In September 2022, Cointelegraph reported that a trader attempted to sell $1.8 million in Compound USD (cUSDC) through Uniswap v2 and only received $500 worth of assets in return. In this instance, another MEV performed an arbitrage trade before its over $1 million in profits were hacked just hours later.


On Oct. 11, USDR depegged after users requested over 10 million stablecoins in redemptions. Despite being 100% backed, less than 15% of its then $45 million in assets were backed by liquid TNGBL tokens, with the remaining backed by illiquid tokenized real-estate assets.


As explained by analyst Tom Wan, the tokenized assets were minted on the ERC-721 standard, which could not be fractionalized to create liquidity for investor redemptions. In addition, the underlying homes could not be immediately sold to meet investors’ withdrawal requests. Altogether, the Real USD treasury could not meet the redemptions, leading to a collapse in investors’ confidence.Why USDR depegged despite being fully backed: Using Illiquid asset backing liquid Asset

- USDR is 100% backed. 50% of them come from stablecoins and the remaining comes from Real-Estate

- When there is a bank-run (Huge Redemption of USDR), the Stablecoin liquidity in the… https://t.co/xOrsa5gpKU pic.twitter.com/OYhQ0twUUd— Tom Wan (@tomwanhh) October 12, 2023


Magazine: Zero-knowledge proofs show potential from voting to finance# Blockchain# Cryptocurrencies# DeFiAdd reactionAdd reactionRead moreHow to earn passive income with peer-to-peer lendingOKX exec says KYC will ‘raise the bar,’ bring real capital into crypto: Blockchain Economy Dubai 2023The economy is surging — which means it might be time to start buying Bitcoin

News Feed

Turner Wright7 hours agoCrypto donations fund fire relief efforts on MauiThe Giving Block matched more than $68,000 in crypto and fiat donations to raise more than $136,000 for a project aimed at assisting efforts follow
Arijit Sarkar1 hour agoBinance scouts art for Pierre Gasly’s F1 helmet at Abu Dhabi GPBinance announced a helmet design competition to shortlist the winning art, which will be used as the helmet artwork of Gasly, who w
Solana Holds Support Above Key Indicator – Expert Sees Push To ATH If Momentum Returns
Este artículo también está disponible en español. Solana has faced relentless selling pressure since late January, wiping out over 40% of its value after reaching all-tim
Binance Becomes the Blockchain and Cryptocurrency Industry’s First to Join the National Cyber-Forensics and Training Alliance (NCFTA)
Binance Becomes the Blockchain and Cryptocurrency Industry’s First to Join the National Cyber-Forensics and Training Alliance (NCFTA) sponsored Binance, the world’s leading
Bitrue To List SundaeSwap As Cardano’s DEX Gets Off To A Rocky Start
Bitrue To List SundaeSwap As Cardano’s DEX Gets Off To A Rocky Start press release PRESS RELEASE. SundaeSwap (SUNDAE) has been added to the list of tradable assets supported by le
Bitcoin, Ethereum Technical Analysis: ETH Nears $1,230 Resistance, Following Strong US GDP Data
Bitcoin, Ethereum Technical Analysis: ETH Nears $1,230 Resistance, Following Strong US GDP Data Ethereum edged closer to a key resistance level of $1,230 on Dec. 23, as markets con
Adrian J. Permal4 hours agoWas Sam Bankman-Fried behind a scam project?This week’s episode of The Market Report explores allegations that SBF was behind the recent BALD token rug pull and dissects why Bitcoin is fallin
Amaka Nwaokocha12 hours agoCerebras Systems secures $100M AI supercomputer deal with UAE’s G42Alongside G42, Cerebras aims to expand the supercomputer, with plans to establish 36 exaflops of AI computing in the coming
BCH Funding Debate: Developers Plan to Launch IFP-Free Version of Bitcoin ABC
BCH Funding Debate: Developers Plan to Launch IFP-Free Version of Bitcoin ABC On February 19, a group of well known software developers announced the launch of a new Bitcoin Cash
Smart TVs and NFTs Collide: Samsung Introduces World’s First Television-Based NFT Platform
Smart TVs and NFTs Collide: Samsung Introduces World’s First Television-Based NFT Platform The well known electronics giant Samsung, the manufacturer of LCD and LED panels, lapto
US President Biden Nears Decision to Choose Fed Chair — Reports Indicate Toss-up Between Powell and Brainard
US President Biden Nears Decision to Choose Fed Chair — Reports Indicate Toss-up Between Powell and Brainard Following the passing of the Biden administration’s infrastruc
South African Treasury on Crypto Regulations: Amendments to Relevant Laws to Be Finalized in 2022
South African Treasury on Crypto Regulations: Amendments to Relevant Laws to Be Finalized in 2022 The South African Treasury says it expects the amendments to the country’s