Specifically, a user, X, discovered that someone on the OceanSwap DEX platform had swapped 131,350 wUSDR tokens for 0.0001 USD in USDC, resulting in a substantial loss. Additionally, this individual had to pay a 0.0012 BNB (worth $0.25) gas fee.
USDR is a stablecoin backed by Real World Assets and several cryptocurrencies, considered to have poor liquidity and high volatility. The coin had experienced a severe devaluation, dropping from $1 to $0.5 USD on the evening of October 11, due to the impact of a sudden withdrawal wave.
Someone swapped 130,000 $USDR for 0.0001 $USDC
REKT pic.twitter.com/YPjcUC4vzS
— Rekt Fencer (@rektfencer) October 11, 2023
Following the loss of its peg to $1 on October 11, it’s possible that this user may have panic-sold their USDR holdings and encountered an error during the transaction.
“Due to the loss of peg of the USDR stablecoin, this individual inadvertently swapped 131,350 USD USDR for 0 USD USDC during the USDR sell-off,” Lookonchain reported on X.
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“And an MEV bot successfully executed a transaction, taking advantage of the price differential of $107,000.”
The precise cause of this incident remains unclear; however, it may be related to the imbalance in the number of tokens within the trading pool.
