TNGBL can be used to mint Real USD at a 1:1 ratio in restricted amounts. The TNGBL backing will never exceed 10% of the market cap of USDR and it is the first token allocated to overcollateralization based on other asset values. The amount of total Real USD that can be minted with TNGBL cannot exceed 10% of the amount of USDR minted minus USDR redeemed. Minted USDR is inclusive of mints from DAI, TNGBL, LPs as well as USDR minted against gains.
At times, the amount of TNGBL in the Total Backing (overcollateralization) may exceed 10%, this is due to appreciation in the price of TNGBL (impacting its treasury value) and not additional minting. While new USDR should be minted against those gains and used to purchase real estate, at times that USDR will be burned, providing additional cushion in the backing and allowing for TNGBL price corrections without risking 100% collateralization.
See below for more details on the TNGBL token.
- Provides a cushion against real estate price volatility
- Enables Tangbile labs to mint Real USD and use these funds to accumulate BAL, CRV, etc. which can be leveraged to drive further adoption.
- Allows for the flywheel below.
TNGBL price crashes causing a drop beneath 100% collateralization ratio
- USDR's unique backing allows for an auto re-collateralization mechanism. Should backing ever fall beneath 100%, 50% of rental yield is retained to regain 100% backing.
In the case of 100% Real USD redemptions, the TNGBL portion of the backing doesn't return $1 for each dollar of TNGBL in the backing.
- Real Estate has a long predicable history of price appreciation in FIAT, meaning soon Real USD will be 100% collateralized by just Real Estate and DAI and the TNGBL portion will simply provide additional collateralization and yield.
- Until this occurs however we have set up an insurance fund, to provide additional confidence to the market that in the case of 100% reduction in market cap that all users will receive $1.
TNGBL is the native token of the Tangible marketplace, it accrues value from the Tangible marketplace fees, 2.5% per tx. This gives it value independently of its 10% claim on Real USD seigniorage. More details here.
Future products launched by Tangible (borrowing, baskets etc) will also accrue value to the TNGBL token, this creates a useful flywheel: