It is obvious that the volatility of leading cryptocurrencies is an obstacle in the blockchainspace. The world needs a stable asset, a shield from where they can park their valuables in times of uncertainty and dropping asset prices. With the rise of Tether (USDT), more institutions got involved. The stablecoins-related trading volumes keeps growing every quarter.
It is essential that there is a stablecoin. Stable in value and pegged against secondary assets which act as collateral. These coins and tokens act as liquiditychannels through which exchanges can enhance their customer services.
The Reserve Protocol
The team at Reserve Protocol is determined to run a trusted and an accessible stablecoin. The Reserve Protocol can be deployed on top of any smart contracting platform. Although the initial development has begun in Ethereum, the team is planning to create a two-way bridge, allowing complete interoperability of Reserve Protocol tokens. In time the team plans to devolve each component and eventually decentralize the network. By rolling out a safe haven stablecoin they hopefully can convince governments to replace their currencies with their asset-backed token.
The Reserve Stablecoin (RSV)
There are two types of ERC-20 tokens that supports the Reserve Protocol. The Reserve stablecoin (RSV) is a hyper-inflation- proof asset that will be initially pegged one-to-one against the USD before being collateralized with a basket of blockchain assets stored in the Reserve’s vault in later stages. These assets will be diversified and made up of tokenized real-world assets including securities, commodities and currencies. The Vault’s goal is to act as a cushion against systemic risks. In the long term, the team’s view is that there would be 100 different low-volatility assets backing the RSV. The RSV is fully backed and the collateral is kept at Reserve’s vault. The vault is a smart contract that contains a pool of blockchain assets that are used to collateralize the token.
The Reserve Rights Token (RSR)
The second type is the Reserve Rights Token (RSR) which serves two main functions. Acting as a utility token, the holders will vote on governance proposals. It will also be used to keep the RSV value at its target price of 1 dollar. The RSR token is volatile and will be offered to investors, funding the project. The RSR token guarantees the collateralization rate of RSV and maintains the value of RSV.
RSR is used to recapitalize the network’s ecosystem whenever the protocol’s holding at the Reserve’s Vault depreciates. It is expected that the token would aid in re-calibrating the network. Whenever there is an uptick of RSV’s total supply, RSR tokens in circulation shall decrease.
Investors
The Reserve Protocol aims to build a universal safe haven, a store of value which is secure and safe against hyper inflation. To achieve this goal the team has a few big investors like COINBASE end the Digital Currency Group.
The RSR token is trading at $0,0008585 and can be bought at the Hotbit en HUOBI GLOBAL exchanges. I think the coin has a promising usecase. For investing: do your own research :)
