Last week a depeg of Stack’s CDP MORE caused a significant market event throughout the re.al ecosystem. Between the depeg itself, the pricing impact to other assets on Pearl, subsequent panic selling and overall market chaos, many of the chain’s protocols were impacted.

Stack has shared their plan to solve the current situation with outstanding MORE debt and the future of Stack on re.al.

Detailed below is a summary of where things stand on other key protocols and products in the ecosystem.

re.al

The chain will continue to operate as normal and value will accrue back to the veRWA holders as designed. We continue to focus on expanding the ecosystem, developing and launching new protocols, and identifying new partners to join the ecosystem.

Surge, re.al’s native Money Market (a fork of Compound v2) is deep into development. UI integration and testing are next on the schedule and then an audit. We’re hoping to bring Surge to market in January of 2025. Surge represents a new opportunity for liquidity and yield generation on re.al, through a format many are familiar with.

Beyond Surge, we’re in conversations with other development teams to bring innovative products to re.al. Our goal is to remain flexible and reactive to a shifting market environment. RWAs will remain a core pillar in the chain thesis. However, we’re at a place when DeFi itself is struggling to remain relevant as meme volatility dominates the attention. Being a largely unestablished chain, we must be able to both create new markets and capture share in existing ones.

Arcana

Amidst the chaos of last week, Arcana temporarily suspended redemptions of arcUSD. Arcana isn’t the first protocol to suspend redemptions in a crisis situation, however the goal is to never have to make this decision again. The learnings from this experience will inform the product design going forward.

Arcana will implement a cap on redemptions so that only a specified amount of the total supply can be redeemed at any given time. If the redemption cap is met, users looking to exit will need to either wait for existing redemptions to clear on the designated timeline to open new redemption capacity or sell their arcUSD. This redemption cap will scale alongside TVL. The “redemption cap” and “available redemptions remaining” will be clearly integrated into the protocol UI.

Specifics on the implementation will be shared at a later date.

In the meantime, Arcana operations will continue as normal. The rebase will continue to distribute to users and redemptions will open as the current backlog of redemption requests is fulfilled. The Insurance Fund now covers 1% of market supply.

Pearl

Pearl will continue to operate as normal. Despite the market chaos, nothing is broken on the DEX. Emissions will be distributed on the normal schedule and incentives will resume next epoch. That team will continue to examine the various incentives models in the protocol and propose revisions as necessary.

Tangible

For the foreseeable future, Tangible will no longer seek to expand the supply of UKRE and will focus exclusively on off-chain liquidations of the remaining properties in its portfolio. UKRE, with the properties currently minted into it, will remain an actively managed product by the team. Tangible will continue to explore new avenues to tokenize RWAs and meaningfully integrate them into DeFi systems.

Integrating real work value and an uncorrelated, offchain source of yield into DeFi is a vision we still believe in. We hope you’ll stick around and join us for the journey ahead.