Tangible

Other

Tangible is the issuer of of Real USD, the first overcollateralized stablecoin backed by tokenized, income-producing real estate.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Tangible offers the first fully collateralized stablecoin that is backed by income-producing, tokenized real estate.
What we like less
Up to 10% of Real USD's (USDR) backing can be minted with the native TNGBL governance token, which introduces concerns around the stablecoin's collateralization.
What it means for you
Offers you a simple way to passively earn yield on your USD, with collateral exposure to real world assets like real estate.

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Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $41.6M (Rank #96)
  • TVL Ranking by Other: #0
  • Blockchain: Polygon, Base, Optimism, Ethereum, Arbitrum
  • Chain TVL
    • Polygon: $39.8M
    • Base: $1.21M
    • Optimism: $379.62K
    • Ethereum: $248.63K
    • Arbitrum: $2.55K
Risk Assessment
Watch Out
Protocol Code Quality
  • Code not reviewed by any experienced auditors
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2022; maturity over six months reduces technical risk as smart contracts are moderately battle-tested
  • Bottom 80% by total value locked increases risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • Protocol is susceptible to death spirals
  • Solid controls to prevent oracle price manipulation
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
Things to know about Tangible

How Tangible works

Tangible offers the first overcollateralized stablecoin that is backed by income-generating, tokenized real estate. Tangible notes two key advantages to backing a stablecoin with real world assets like real estate. First is the quality of the underlying yield. The tokenized properties in the Real USD (USDR) treasury are leased to tenants. This rental yield is paid out to USDR holders via a daily rebase (similar to OUSD). If USDR were ever to fall below 100% collateralization, 50% of the daily rebase would be used to recollateralize the treasury instead. Second is the underlying real estate properties may appreciate in value over time. This appreciation in the backing of USDR allows for novel design mechanisms that contribute to additonal yield and sustainability of the overall system. Any system gains from appreciation of assets in the treasury will push USDR's collateralization above 100%. Instead of holding that value in the appreciated assets (i.e. TNGBL token and tokenized real estate), the protocol will immediately recognize the incremental value and use it to add new property to the treasury. This is done by minting USDR 1:1 against those gains. Users can mint USDR 1:1 with DAI and can be redeemed 1:1 for DAI. In the event that all DAI reserves have been depleted from the treasury, the treasury will issue pDAI (promissory DAI) at a 1:1 ratio. pDAI entitles the holder to claim DAI 1:1 once real estate NFTs are liquidated and proceeds are transferred back to the treasury. The max supply of pDAI at any given time is the total USD value of all RWAs (real world assets) and DAI in the treasury. When pDAI is redeemed for DAI it is burned.

How Tangible makes money

When purchasing a real estate NFT, there are several fees and reserves that are included in the True Property Value (TPV). A 2% vacancy fee is taken at the initial purchase to ensure continued rental disbursement during periods without an active lease. A 5% maintenance fee is also taken at the initial purchase to cover repairs and maintenance costs, and any excess funds are returned to the owner if not used. A 2% annual management fee is charged by Tangible Custody to manage the property and is deducted from the rent after the first year. Local taxes, such as stamp duty in the UK, are included in the initial real world purchase transaction and do not apply when the NFT is transferred or resold. Finally, insurance fees are included in the tokenization costs, and the first year's insurance is included with the initial purchase. The value of all fees and reserves that transfer with the NFT are included in the TPV.

How you make money on Tangible

You can deposit your DAI stablecoin or buy USDR on the open market to start earning passive yield directly to your wallet. There is also a 10% temporary incentive that is airdropped daily to USDR holders for early adopters.

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