OMG WHAT HAPPENED TO RESERVE!Ⓡ
As one of our favourite projects nears a technological milestone in the release of mainnet, we take a look at what could change for Reserve protocol with Rtokens.
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Defi has experienced many peaks and troughs however with a project aiming to fight hyperinflation live Reserve, it identifies itself as one of the top projects we cover in our private group.
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I think part of supporting a project as much as I support Reserve means that constantly I want to provide the chat with updates and almost support my conviction with evidence.
Especially as many people have since kept their eyes on Reserve due to the impressive price action, I want to provide an in-depth analysis of the protocol’s developments to map out the intentions of the project.
Without much delay, let’s take a look at Rtokens and Reserve as a whole!
Factors That Support My Case🧪:
As I repeat in every single article, it’s very easy for builders and teams to go quiet without much scrutiny during the bear as engagement is at an all-time low and often people expect projects to disappear which almost acts as a self-fulfilling prophecy.
When times get difficult I will naturally gravitate towards builders that don’t look for an excuse or an easy way out. Reserve has always been cautious of the markets hence their ability now to continue mainnet development at a rate which was similar to the bull market.
We see things emerge very quickly during the bear and it’s evident who is still committed to their mission and who isn’t. In this case, this is what supports my conviction even more because even if they take a while to achieve something, I am in no rush to reap the rewards of that. Reserve is a team of professionals well committed as a whole to their one mission of fighting hyperinflation.
It’s evident that there isn’t much momentum lost by Reserve instead there is a range of protocol developments that we should get into to heighten factors that support my conviction.
What Is An Rtoken? ®️
When $LUNA & UST crashed a lot of good publicity went towards RSR founder Nevin Freeman for predicting the collapse of algorithmic stablecoins and his issues with the game theory used to operate the stablecoin. This was nice because when the market responds to your conviction it tells you, you’re doing something right.
Rtokens are a new part of the Reserve protocol that is just the word used for stablecoins that are created on top of the Reserve protocol.
Rtokens can be fully asset-backed by an ERC-20 token and can be insured fully through $RSR staking which is another added utility which inevitably accrues value for the native token.
Anyone will be able to create a Rtoken which will give them autonomy over the collateral basket and governance as well as revenue splits between the Rtoken holders & $RSR stakers.
Another way to maximise profit through actively using the Reserve protocol which if you are bullish could be a great idea.
Attention has never been more focused on stablecoins as the market and regulators are looking for responses to them. Interestingly, Rtokens are fully collateralised and fully redeemable which incentivises the insurance pool ($RSR stakers) and yield earning collateral.
Who Would Rtokens Appeal To?🤷♂️
When UST went to 0 it was people looking for additional yield through staking on Anchor that got BURNED and it led to people claiming that additional yield just concludes greed.
In this case with Rtokens, the use case differs completely from stablecoins we may have seen before.
A thread I came across highlighted the exact ways in which we can see Rtokens incentivise $RSR holders which are essentially our main focus:
As we can see, there are many different groups that Rtokens will appeal to but the one that may bring the most users could be DAO treasuries as more and more DAOs have been emerging in the market.
I have seen a lot of talk of crypto going on a bank run where users withdraw their funds from exchanges and lenders to avoid the mass halting in withdrawals.
Rtokens have also a way to avoid this occurring on their protocol which again amid the bear market will not be ignored by large wallets looking for SAFE & REPUTABLE protocols to execute their DAO treasuries for example.
It shows that for a while if you can look away from all the noise in the market that’s made by unimaginable targets you can watch your investment grow not just in profits but watching Reserve change their UI, launch their mainnet & expand in team members is all part of what makes the project so appealing to me.
I haven’t topped up in a while because it simply isn’t the environment and following charts is something I believe in regardless of your conviction so when the time does come to DCA I will share the buy orders as usual.
⚠️“This article was written and published for the members library on July 7th 2022"
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