Bitcoin was created to give the average person a peer-to-peer economic system and a storehouse of wealth assets that could provide financial autonomy and access to banking, especially for people living in places where financial services are scarce or non-existent. – are present.
Over the past five years, there have been a number of blockchain projects that aim to reflect the core mission of bitcoin and the growing popularity of stablecoins highlights the need for an alternative financial model. One project that is starting to see some momentum is Reserve Rights (RSR), a dual-token stablecoin platform consisting of an asset-backed reserve stablecoin (RSV) and the RSR token, which helps stabilize the price of RSV. Is. Arbitration opportunities system.
Data from Cointelegraph Markets Pro and TradingView shows that the price of the RSR, along with the broader market, has declined over the past few months, but the token has recently seen an uptick in trading volume, which suggests that there is a potential Revival underway.
Three reasons for increased demand for RSR tokens include the upcoming launch of the reserve rights mainnet, anticipation of token staking, and RSV’s ability to maintain its peg during recent market-wide volatility.
rsr mainnet launch
The biggest upcoming development for Reserve Rights that has its community excited is its August launch of its mainnet.
Following the launch of Reserve Rights on the Ethereum (ETH) mainnet, the full capabilities of the protocol will be enabled, including the ability to create stablecoins backed by baskets of ERC-20 tokens.
As well as being fully collateralized, stablecoins on protocol (RTCoins) can be insured as a way to help protect against collateral devaluation. RTokens are also able to generate revenue for their holders, which is an incentive for RSR holders to bet their RSR on a specific RToken.
Revenue for token holders comes from the yield from transaction fees, revenue shares with collateralized token issuers, and borrowing collateral tokens on-chain.
The mainnet launch of RSR will also enable token staking. For most staking protocols that exist today, the main function is to lock the tokens in a smart contract that prevents holders from selling them, but it doesn’t actually perform any additional functions for the ecosystem.
Once the full Reserve Protocol is launched on the Ethereum mainnet, Reserve Rights (RSR) holders will be able to stake their tokens, thereby insuring and operating the network.
Let us introduce you to all the details of RSR staking in our latest article https://t.co/hS8rojPo3z.— reserve (@reserveprotocol) 2 May 2022
In contrast, betting on the reserve protocol is a practical use for the protocol because pledging an RSR token to a specific RToken helps insure that token against collateral default. This means that if any of the collateralized tokens default, the RSR can be forfeited to keep the RToken as its peg.
In exchange for taking on this risk, RToken revenue is shared with RSR stakeholders to guarantee adequate insurance. The return offered by each RToken will depend on various factors, including the market cap of the RToken, the revenue generated from the token, the percentage of revenue shared with the RSR stakers, and the total amount of the RSR.
related: Latin America’s Largest Digital Bank Will Allot 1% to BTC, Provide Crypto Investment Services
A growing community and successful stablecoin
A third factor boosting RSR is the continued growth of its community and the ability to maintain its peg of its RSV stablecoin amid recent market volatility.
When TeraUSD Classic (USTC) was falling during the height of volatility in May, the lowest price RSV hit was $0.9923. This means that the RSV is better than most of the stablecoins in the market.
As well as RSV, the Reserve rights community also recently surpassed 600,000 users on the Reserve app, which now provides access to over 18,000 merchants in Latin America that accept RSV and over $100 million. Let’s process the monthly quantity.
The team behind the protocol is also currently working on adding support for users in Mexico, with the ability to initiate the onboarding of a new group of RSV users.
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