/biz/ - Business & Finance

>>17067672

>>17058445
RSV is the stablecoin
RSR is the arbitrage token.

$1 worth of RSR at market price allows you to buy one excess RSV from the vault which you can sell on the open market for a profit when RSV is trading above the $1 peg.

1 RSV can be exchanged with the vault contract for $1 worth of backing assets which you can sell on the open market for a profit when RSV is trading below the $1 peg.

I just made it to 10M.
That's the end of accumulation for me. Fucked myself buying my first 5M at 27 sats, bought the rest below 22.
Now all that's left is hoping that Satsgang is real so this thing could pump. I'm unironically happy with 75 sats, everything above is just a nice bonus.

Ooo yeah

Join us /biz/

Jason Parser is a fag

We're gonna be fucking rich

Fucking comfy as fuck

honestly this looks neat, and the backers/investors list is both impressive and trustworthy. I'm sold.

Alright RSRlets, explain to me why the RSR token will raise in value ? To me it looks like they will just mint more rsr if needed so that won't make the price go up.

Lol so I finally did my research on Reserve/ RSR after hearing about it non stop for the past few weeks

This project is doomed to failure. Its pegging mechanism relies entirely on a centrally managed 'vault' containing tokenised assets - ie assets held on the Reserve team's books for which they issue ERC20 tokens at a 1:1 backing. This is exactly the same mechanism as Tether, it's just as centralised as Tether and just as susceptible to gaming/fraud.

Reading the whitepaper, the team talks about how they eventually want to move their peg from this centralised system and make it decentralised. BUT HERE'S THE KICKER, THEY LITERALLY HAVE NO PLAN ON HOW TO DO THIS. THEY OPENLY ADMIT TO NOT KNOWING HOW THIS IS GOING TO BE DONE. NEVIN, IN EVERY INTERVIEW, BASICALLY SAYS 'LMAO GUYS IDK HOW THE FUCK WE'RE GOING TO DECENTRLAISE OUR PEG, IF ANYONE KNOWS HOW PLS EMAIL US'

DAO/Makr is an already proven stablecoin protocol, that is sufficiently decentralised, and has shown its ability to hold DAI at a stable value of $1. Reserve have basically tried to rip off their mechanism but literally only succeed in making it worse, more centralised, less certain to succeed, and more susceptible to fraud. Their criticism of DAO is also entirely unfounded, they claim that it is unscalable but have no evidence of why this is the case, just abstract arguments

If you invest in this project, you are buying into hype. You are buying into the HOPE that this team will ONE DAY, SOMEHOW, figure out a plan on how to actually organise their protocol. They literally do no not know themselves how they are going to do it.

I think I'd rather wait for them to come out with something a bit more concrete than their hopes and dreams of one day being smart enough to come up with a plan for their protocol to actually work.

-RSR can be burned by arbitrators when the price of RSV is over $1 - these will mainly be bots.

-RSR can be burned when the vault ratio exceeds a certain threshold. RSV is stable but the assets that back RSV fluctuate in value. Any excess reserves in the vault over a certain target ratio can be used to exchange $1 RSV for $1 RSR. For example, If the RSV supply is 3.7 billion (Tether) and the vault assets appreciate by an estimated 4% of RSV including transaction fees earned that would burn ~$150 million worth of RSR. That is ~40 billion RSR at current price. This is the real value of holding RSR.

-RSR can be minted when the vault ratio is under a certain threshold. There are risks that the vault is backed with assets that depreciate in value so RSR will be sold on exchanges.

-MakerDAO and Reserve valuations will moon if securities tokens get approved by the SEC. This is the end game. Trillions in assets that can be locked into the protocols and all interest earned on the circulating supply of DAI/RSV goes towards burning MKR and RSR. There is a reason Facebook is getting into the stablecoin issuance market. All these will run on oracles - Chainlink will be fed.