Reserve Rights - a two-token stablecoin platform that was launched in May 2019, following a successful Initial Exchange Offering (IEO) on the Huobi Prime platform.
Contents:
What is Reserve Rights?
The Reserve Rights token dual setup includes a stablecoin, known as the Reserve stablecoin (RSV). It is backed by a basket of assets, managed by smart contracts. The second token - the Reserve Rights (RSR) token, used to keep RSV stable at a target price of $1.00.
In the later stages of the project, Reserve Rights plans to support the Reserve stablecoin with an increasingly diverse basket of assets and eventually move it away from the US dollar peg - instead creating an alternative reserve asset where the RSV tokens instead represent a partial ownership of the collateral fund.
What is the peculiarity of the platform?
Unlike other stablecoins, which are usually backed by US dollars (USD), held in reserve in a bank account, reserve stablecoins are backed by a basket of cryptocurrencies managed by smart contracts. The uniqueness of the project lies in the following:
| Basket | It consists of Ethereum stablecoin assets, including USD Coin (USDC), True USD (TUSD) and Paxos (PAX). Developers have plans to move to a more diverse basket later, which could eventually include fiat currencies, securities, commodities and complex asset types such as synthetics and derivatives. |
| Programmability | Reserve's main feature - its Reserve Rights token, which is minted and traded when the RSV stablecoin loses its peg to the US dollar. Funds, received from the sale of RSR tokens, help to replenish the RSV collateral reserve. Whereas with the value of RSV above $1, additional collateral will help to buy and burn RSR from the secondary market, reducing supply. |
Arbitrageurs can benefit from this mechanism when RSV is priced above $1 and then sold at the current market price to take the difference as a profit. This option is only available to RSR holders and is currently one of the main drivers for holding RSR tokens.
Project tokenomics
Reserve Rights has a fixed supply of 100 billion tokens. Of these, less than 10% are currently in circulation as of October 2020. The maximum supply of tokens has already been premined, but most of it is blocked for various reasons. Funds are released after a month delay with a public announcement from the Reserve team, explaining the purpose of the withdrawal. Reserve Rights (RSR) - a popular token that currently maintains excellent liquidity.
It is available for purchase and trading on several of the most well-established cryptocurrency exchange platforms, including:
- Binance;
- Huobi Global;
- OKEx.
The coin can be traded with various popular cryptocurrencies, including Bitcoin (BTC), Tether (USDT) and Ethereum (ETH), as well as the US Dollar (USD) on multiple platforms.