Trader Swaps 131,350 USDR for 0 USDC

Trader Swaps 131,350 USDR for 0 USDC

During the panic of USDR's severe depeg on the evening of 11/10, a trader unfortunately swapped 131,350 USDR but received 0 USDC in return.

Incident Overview

On 12/10, the crypto community discovered that a trader had swapped 131,350 wUSDR via the DEX OceanSwap. However, seemingly in a state of panic, the trader confirmed the swap at a rate of 1 USDR = less than 0.0001 USDC.

In an attempt to transfer assets to a more stable coin amid USDR's depeg of up to 50%, the trader ended up receiving almost no USDC.

Detailed Breakdown

• Transaction: The swap of 131,350 USDR.
• Result: The trader received almost zero USDC.
• Fee: The trader paid 0.0012 BNB (approximately $0.25) as gas fee.
• MEV: A Miner Extractable Value (MEV) bot processed the transaction and profited $107,000.
• Possible Cause: Imbalance of tokens in the trading pool during the swap.

Community Reaction

The reason for the discrepancy in the exchange rate remains unclear but can be attributed to the imbalance of tokens in the trading pool.

USDR is a stablecoin backed by real estate (Real World Assets) and several cryptocurrencies, which are often seen as illiquid and highly volatile assets. The coin experienced a depeg from $1 to $0.5 on the evening of 11/10, triggered by a massive withdrawal wave.

Conclusion

This incident highlights the importance of ensuring proper liquidity and understanding market conditions when trading, especially during periods of extreme volatility. It serves as a cautionary tale for traders to double-check transaction details before confirming swaps.