I want to talk about the Reserve protocol ($RSV AND $RSR) be..
Published: June 8, 2022 at 1:23:05 AM
I want to talk about the Reserve protocol ($RSV AND $RSR) because someone asked me about it today. This is a dual-token stable coin protocol.
ps. if you asked me about this pls send me a follow up message, I lost our chat thread and would like to discuss further
In short, the goal of this project is to offer a STABLE alternative to fiat, and going around Bitcoin to create their own token. They are trying to create currencies that can stabilize in purchasing power without the reliance on state-issued and government monitored currencies. A decentralized-stable-token with same utility as fiat.
The token $RSR (currently no utility, as stated on their website) which is pegged to $RSV (main token), which aims to have the stable purchasing power as the US dollar.
This is an amazing idea but poses many problems.
1. Regulation and eventual government centralization.
2. The idea is that by aggregating together baskets of tokenized assets, but they made it clear that they have no idea what baskets of assets yet. This is fully a protocol in development, an idea at best.
3. $RSR, the dual token, pumped 40% today with no utility. This demonstrates hype building around the project and a narrative of anticipation but everything is still fully uncertain.
HOWEVER. IF DONE PROPERLY. THIS WILL BE SOMETHING CHANGING THE ENTIRE CRYPTO SPACE. THERE HAS YET TO BE A CRYPTOCURRENCY UTILIZED AS FIAT WITH PARALLEL PURCHASING POWER. NOT BTC, NOT USDC, NOTHING.
Quoted from their website:
“If this works as conceived, the outcome will be a decentralized currency with stable purchasing power that cannot easily be debased.”
Heavy on the “if” though..
DYOR.