Another issue that raises questions in the minds of investors in the cryptocurrency market is stablecoin companies. Although these companies introduce their tokens indexed to the US dollar to the market, we have witnessed the bankruptcy of many important projects so far. The developments following the collapse of Terra show that it is now necessary to regulate this issue.
Lost All Assets in a Single Transaction
A crisis on October 11 brought the problems in stablecoin companies back to the agenda. Real USD (USDR), a real estate-backed stablecoin project, faced a serious issue. In the project indexed to the US dollar, yesterday’s events led to the disappearance of an investor’s $131,000 investment.
According to a report published by blockchain analysis firm Lookonchain, the investor lost their assets when they tried to swap their USDR tokens with USDC. The investor, who used the OpenOcean DeFi platform, which is part of the BNB ecosystem, for the swap transaction, made the transaction at a time when the value of USDR had dropped by approximately 50% due to its liquidity problem.
Arbitrage Bot Takes Action
Meanwhile, a bot in the ecosystem made a series of transactions and earned $107,000 in profit by taking advantage of this arbitrage opportunity. The decrease in token value due to liquidity weakness in DeFi protocols can reach up to 100%. It is common in the DeFi field for such decreases to occur in only one protocol, and in such cases, arbitrage bots come into play.
A similar incident occurred in September 2022. An investor wanted to sell cUSDC worth $1.8 million through the Uniswap DEX V2 and received only $500 worth of assets in return. In this case, the robot named MEV made over $1 million in profit. These incidents do not involve any hacking attacks.
On October 11, USDR announced its withdrawal from the market following these incidents. Despite being supported by many corporate companies, only 15% of the $45 million company assets were allocated to support the token at the launch date. The remaining assets were backed by tokenized real estate assets.