2023-10-17 08:03:51
An interesting transaction took place on October 11th when a trader exchanged 131350 Real USD (USDR) coins for 0 USDC coins. So specifically, he lost the entire amount. Lookonchain first brought down the information on October 12. According to this, the swap was carried out on the BNB Chain through the decentralized exchange called OpenOcean. Just as the USDR lost nearly 50% of its value in a liquidity crash. History of the Losing USDR Transaction An MEV bot immediately detected liquidity problems and made a profit of $107,002 through an arbitrage transaction. When liquidity is very weak, the short-term value loss can be as high as 100% on a decentralized exchange. Back in September 2022, a trader wanted to sell $1.8 million worth of Compound USD (cUSDC) coins via Uniswap v2 and received only $500 for it. Even then, an MEV bot executed an arbitrage transaction in front of him, only to pocket more than $1 million in profit. On October 11, USDR lost its value and peg when users claimed back more than 10 million stablecoins. And while the USDR is 100% hedged, only 15% of its total assets are covered by liquid TNGBL tokens, with the rest being not-so-liquid tokenized real estate. And the underlying properties cannot be sold immediately in order to satisfy the allocation needs of investors. And so the Real USD was unable to meet investor withdrawal demands, leading to a collapse in liquidity and confidence. And the lesson is clearly that liquid assets cannot be covered by illiquid assets. Plus, the tokenized properties were created using the ERC-721 standard, not ERC-20. Thus, there was even less chance to satisfy the requests.
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#trader #sold #131K #USDR #USDC #coins