Earn 17% Passively By Holding This Re-Imagined Stablecoin

I know crypto and decentralized finance will succeed. How do I know? I research a lot of projects, and I’m continually blown away by the creativity, innovation, and streamlining that digital assets and decentralized applications offer. Occasionally, I come across projects that are so novel and well-designed that I feel pride in being one of the first to discover and understand how brilliant the project is.

USDR is an example of one of these projects. USDR is a Swiss army knife type of project, packed with multiple features and utilities that apply to everyone. And, after learning about USDR, I only wish I had more funds in stables that I could convert to USDR.

And while I don’t, there’s a good chance that many of you reading this have some funds in USDC, USDT, DAI, or another stablecoin, and you are constantly searching for a solid yield. Well, respected reader, I will share the good news about a project I am certain you will be equally impressed by.

What is USDR?

USDR is a stable coin partially backed by physical real estate. USDR protects against inflation, exposure to real estate’s consistent appreciation, and real income from the USDR portfolio.

USDR is native to the Polygon blockchain but has a wrapped version, wUSDR, on Binance Smart Chain, Optimism, and Arbitrum. And when I refer to it as a stablecoin, USDR has had more stability in its history than many other stablecoins we are familiar with.

How does USDR work?

The project’s docs do a great job summarizing USDR:

“Real USD (USDR v2) is a first-of-its-kind natively rebasing, yield-bearing, overcollateralized stablecoin, pegged to the US dollar.

USDR is primarily collateralized by yield-generating, tokenized real estate.

Backing a stablecoin with Real Estate has 2 key competitive advantages that we believe add significant value to the stablecoin landscape:

1) Yield — The tokenized properties in the Real USD treasury are leased to tenants. This rental yield is paid out daily to holders in the form of a rebase.

In addition to this if Real USD ever falls beneath 100% collateralization ratio, 50% of the daily rebase is instead added to the treasury to recollateralize USDR.

2) Real Estate price appreciation — When priced in FIAT Real Estate has a long predictable history of appreciation. Over the last 50 years, the average sales price of a house in the United States grew from $27,000 in Q1 1970 to $383,000 in Q1 2020.”

When you mint DAI or trade to USDR on a decentralized exchange, you own a stablecoin backed by the following assets.

45% of the collateral comes from a real estate portfolio that is actively growing and managed by the Tangible team. 1% of the backing is in the platform’s native token, TNGBL. Then, 45% is from the DAI stablecoin and 3pool liquidity. Additionally, there is an insurance fund with nearly 7% collateralization. The insurance fund assets can be utilized in an emergency situation to help with peg or sold to meet redemption requirements. These assets can be utilized in an emergency situation to help with peg or sold to meet redemption requirements. And finally, there is a 15% over-collateralization from the TNGBL token.

What does this mean, and why it can benefit you as an investor?

When you hold USDR in your wallet on Polygon, you will receive more USDR tokens via a rebase. The rebase comes from the income yielded by the real estate portfolio. Additionally, you will get bonus TNGBL tokens for a limited time for being an early adopter.

Their website shows the current yield is 17.14% (10% in TNGBL tokens and 7.14% in USDR tokens).

No staking is required. You don’t have to add liquidity to any pools on dexes. No claiming is involved. And you don’t have to worry about voting (or forgetting to vote) or being invested in a stablecoin built on ponzinomics (like UST was).

USDR is more than a stablecoin

By owning USDR in your portfolio, you gain exposure to the most valuable asset class on earth: real estate. But unlike traditional real estate, where you need to qualify for a loan, come up with a down payment, or deal with the headaches of managing a property, USDR requires none.

Even better, your USDR can be converted and swapped at any time. This means your exposure in real estate is 100% liquid every minute of the year. Further, the Tangible team is working on a new Baskets strategy allowing you to borrow against your USDR.

And imagine if you live in Argentina, Nigeria, or Indonesia and want exposure to real estate in the UK, the US, or other places where USDR decides to expand its real estate holdings; now you have an accessible way to do so from your phone!

Key Takeaways

For everyone saying that “crypto is a hammer searching for a nail,” here’s another nail. USDR provides you with an inflation-protected, real-asset-backed, and yield-generating stablecoin. Finally, I guess some investors have gotten the memo. Check out how much the market cap has grown since February.

USDR can be traded on Curve or minted with DAI by bonding at: https://www.tangible.store/realusd/bonding. If you want even higher yields, you can LP wUSDR-USDC on Velodrome for a 33% APR. However, by choosing this option, you will not receive the TNGBL rewards, and you are using the wrapped version with slightly different mechanics.

If you have questions or want to learn more about this project, please check out the docs and visit the Discord with the links below.

Tangible Docs: https://docs.tangible.store/

Tangible Discord: https://discord.com/invite/tMQ9WjVBuS

I have not been paid or sponsored to write this article. I don’t own any USDR at the time of writing, but I plan on accumulating some in the future.

^{This information should not be taken as investment advice. Digital assets like crypto and NFTs involve risk, so you should always perform due diligence before investing. Furthermore, this article is my opinion; I am not a financial advisor.}