Remediation for USDR is our TOP Priority and we continue to make progress in our efforts to remediate the outstanding USDR debts and make redemption payments back to holders as soon as possible.

Following the update shared in Discord on June 3rd, we have additional details to share at this time.

Redemptions

A redemption contract is currently in development; this is the top priority for the engineering team. Once complete, the contract will be deployed to Polygon.

Our goal with redemptions has been to ensure all users have the option to claim payment at the same time, removing any type of “first come, first served” dynamic from the process. We believe this approach solves for that.

How it works:

• Users deposit USDR into the redemption contract, burning it immediately.
• Tangible deposits proceeds from liquidations into the redemption contract.
• Each epoch (epochs likely to be daily) proceeds are distributed equally amongst all depositors in the contract,returning USTB to users in exchange for the burnt USDR.
• USTB claims can be removed at the end of any epoch.
• This continues until users have received a minimum of $1.00 in redemption value for each USDR deposited. Their balance owed will update with each epoch and will be available for viewing by each user on https://polygon.tangible.store/realusd.
• A pDAI to USDR contract will also be deployed allowing pDAI users to access the redemption contract above and liquidity pools on Pearl (more details below.)

Liquidations and Buybacks

The US real estate portfolio is being liquidated in the real world with our goal to have it fully sold by the start of August 2024 (timeframe of six weeks,) understanding that timelines can always change for a variety of reasons. Proceeds from this sale will be primarily used for redemptions, however some may be used for USDR buybacks depending on the price and liquidity conditions at that time.

We are also soliciting offers for the UK real estate in the real world, however the market is not as liquid as the US market. UKRE assets currently average a net yield of +8.25% making them, in our opinion, ideal backing assets for the UKRE Basket token, which these properties will continue to be minted into and liquidated through.

As volume and TVL for the UKRE Basket token improve, we will resubmit for gauge whitelisting on Aerodrome and Velodrome. Recently, conditions for gauges have gotten more stringent and UKRE does not meet the prerequisites at this time. Pools on Aero and Velo will increase our opportunity to build liquidity for UKRE onchain, accelerating our onchain liquidation strategy.

Proceeds from the UKRE Baskets sales will either be sent to the redemption contract above or used to fund additional buybacks, whichever is determined to be more effective given USDR price and liquidity conditions.

The $RWA in the USDR backing can be used in one of two ways:

1. Locked, with the yield used to fund additional buybacks. In this case, users would still receive either $0.10 or 0.04 of veRWA per USDR (whichever is greater) alongside $0.90 of stablecoins.
2. Liquid RWA will be sold to funds and stables used for buybacks or placed into the redemption contract. In this case users would no longer receive RWA as part of redemptions, rather they would get $1.00 in stablecoins. A decision on this will be made in the following weeks, determining which route will be most effective as chain performance is evaluated. If there is appetite from buyers, this is the fastest and most logical route to accelerate redemptions.

Lastly, as noted above, USDR buybacks remain an ongoing process. We will notify the community of our status on a periodic basis.

To assist with buybacks, a USDR bridge to re.al is being added and emissions will be directed towards USDR pools on Pearl, creating deeper liquidity for more efficient buybacks.

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As stated at the top, remediating USDR is our TOP priority. We understand that trust in the protocol is currently low and the best way for us to regain trust is through meaningful progress and eventual closure on USDR remediation. Additional updates will be shared as we continue to work through the process outlined above. We appreciate everyone’s patience and support as we fulfill our commitment to redeem USDR for $1.00 in value.