Thread by @defimastersun

This coin generates over 7% yield without you having to do anything.

And it's a stablecoin.

This is why $USDR will grow to be the next major player in the stables market.

(Stay till the end for bonus yield farming opportunities)

👇🧵

Real USD (USDR) is a stablecoin issued by @tangibleDAO

It is:
- natively rebasing
- yield-bearing
- overcollateralized
- backed by tokenized real estate

USDR can be minted 1:1 with DAI or TNGBL (only up to 10% of USDR minted).

(1/12)

USDR was designed to be a good store of value.

Many fiat-backed stables are exposed to the loss of purchasing power in the US dollar.

But USDR combats the effects of inflation with real estate, which has proven itself to be an appreciating asset class 👇

(2/12)

Yield on USDR is derived from 2 factors:

1. Rental yield

IRL property yield is converted into DAI and paid into the treasury daily, while USDR is rebased.

2. Increase in property value

Gains are automatically converted into USDR which is used to purchase real estate.

(3/12)

USDR is overcollateralized and backed by the following assets:

- Tangible Real Estate NFTS
- $DAI
- $TNGBL
- Protocol-owned liquidity (USDR - 3pool on Curve)
- Insurance fund

(4/12)

USDR's main competitive advantage is that it is backed by real estate, which is a relatively safe asset class that appreciates over time.

However as stablecoin holders, we should be concerned with the stability of the peg.

(5/12)

As with any other stablecoin, there is an inherent risk of a USDR depeg (even USDC lost its peg).

However, there are safety mechanisms in place which aim to prevent this from happening.

(6/12)

1. Rental yield 🏠

USDR is designed to be overcollateralized (>100%).

However, in the event where collateralization falls below 100%, half of rental yield payments will be retained by the treasury as stablecoins.

(7/12)

2. pDAI mechanism 🪙

In the event of heightened demand for USDR redemptions, the protocol issues pDAI.

pDAI stands for promissory DAI, which is basically a token promising to deliver DAI at a later date, after the protocol liquidates current assets in the treasury.

(8/12)

3. Insurance fund 💰

5-10% of USDR's market cap is held as an insurance fund.

This fund can be utilized in an emergency situation to help with repegging or sold to meet redemption requirements.

(9/12)

Yield farming opportunities on Ethereum, Polygon, Optimism, Arbitrum, and BNB

USDR liquidity pairs are on:
- @CurveFinance
- @ConvexFinance
- @ChronosFi_
- @beefyfinance
- @VelodromeFi
- @ThenaFi_

These are the top yield farming opportunities yielding up to 33% APR!

(9/12)

https://twitter.com/tangibleDAO/status/1662137994558734336

Personal thoughts I

Stablecoins form an essential pillar in the crypto market (> $130m market cap) and we've seen the rise and fall of many players.

From fiat and crypto-backed coins to algo stables, many of us hold stablecoins as a store of value.

(10/12)

Personal thoughts II

With real estate as collateral, @tangibleDAO brings a novel concept of a yield-bearing stablecoin to us. This allows our money to not just be a store of value, but counter the effects of inflation.

(11/12)

I'm highly interested in this idea of a RWA-backed stablecoin, but I'm curious to find out what happens in a shock event such as a housing market crash.

Will real estate be a fully reliable backing for USDR?

(12/12)

That's it for this thread.

If you enjoyed reading this tweet, drop me a like and RT below ❤️

Feel free to let me know your thoughts on #RWA by replying below!

Tagging threadoors who inspire me ☁️

@DefiIgnas
@crypto_linn
@crypthoem
@defi_mochi
@Route2FI
@rektfencer
@CryptoKoryo
@CryptoShiro_
@0xFlips
@WinterSoldierxz
@0xTindorr
@ViktorDefi
@Slappjakke
@TheDeFISaint
@LouisCooper_
@0xGeeGee
@defiplAeb
@rektdiomedes