A Polygon-based real estate-backed stablecoin called Real USD ($USDR) has lost over half of its value in a matter of hours after it was drained off of its liquid collateral, leaving only rental properties in the UK backing the cryptocurrency.

According to on-chain data from the Tangible decentralized autonomous organization (DAO), the entity behind the real estate-backed stablecoin, the protocol’s $DAI reserves were completely drained with the only liquid assets remaining being of little over $6 million in its insurance fund, for over 45 million USDR tokens worth a supposed $45 million when pegged.

The protocol’s treasury also includes the native token of Tangible, TNGBL, which also saw its value plummet amid a liquidity shortage that made it nearly impossible for large token holders to liquidate large amounts, as its bid depth on leading decentralized exchange Uniswap is below $5,000.

Amid the crisis, some USDR token holders started moving to sell their holdings for the popular USDC stablecoin, often at steep discounts. According to Lookonchain, the decoupling of USDR saw a trader seemingly accidentally swap 131,350 USDR – worth $131,500 before the depeg – for 0.00000000045 USDC. Meanwhile, a maximal extractable value (MEV) bot pocketed $107,000 from the transaction.

If the trader hadn’t made the move, their 131,350 USDR would, at the time of writing, still be worth around $69,615.5 at the current price of $0.0533 per USDR token. USDR, it’s worth noting, is still backed by a number of UK rental properties, according to Tangible’s website.

Tangible, the protocol behind the token, allows real-world assets to be tokenized on the blockchain. Its marketplace features items such as gold bars, fine wines and luxury watches that can be bought with USDR, the protocol’s own dollar-pegged stablecoin. Each item has a corresponding tangible NFT (TFNT) that can be exchanged or redeemed for the physical asset.

Featured image via Unsplash.