What is Reserve Rights?
The reserve rights' dual token setup includes a stablecoin known as the Reserve stablecoin (RSV), backed by a basket of assets managed by smart contracts. The second token is the Reserve Rights token (RSR
), which is used to keep the RSV stable at its $1.00 price target through a system of arbitrage opportunities.
Unlike RSV, the Reserve Rights (RSR) token is volatile, and its main purpose is to help maintain the stability of RSV. It can also be used to vote on governance proposals - helping holders shape the future of the Reserve Rights ecosystem.
Reserve's goal is to build a stable, decentralized and asset-backed cryptocurrency
to serve as a digital currency. All this with project scalability using 100% collateral. The goal is to create a universal value that is resistant to unreliable banks and hyperinflation.
Who founded Reserve Rights?
Nevin Freeman and Matt Elder are the co-founders of Reserve Rights. Freeman is Reserve's CEO and an established business person. His life goal is "solving the coordination problems that stop humanity from achieving its potential.
Matt Elder is an accomplished specialist who recently worked for Google and Quixey and now attempts to supervise the engineering of the Reserve convention execution as the undertaking's CTO.
Since its launch in 2019, the Reserve team has grown hard and now includes more than 24 staff, including engineers, developers, and legal and compliance staff. All have the same goal to position Reserve as an open, scalable stablecoin that promotes economic prosperity.
How does Reserve Rights work?
Unlike other stablecoins that are normally backed by U.S. dollars (USD) held in reserve in a bank account controlled by the stablecoin issuer or a trusted custodian, Reserve stablecoins are backed by a basket of cryptocurrencies managed by smart contracts.
This basket initially consists of Ethereum
stablecoin assets, including USD Coin (USDC), True USD (TUSD) and Paxos (PAX). Still, there are plans to later transition to a more diverse basket, including fiat currencies, securities, commodities and complex asset types, like synthetics and derivatives.
Arguably Reserve's major defining feature is its Reserve Rights token (RSR), which is minted and sold when the RSV stablecoin loses its peg with the U.S. dollar. The funds generated by selling RSR tokens are used to replenish the RSV collateral pool. In contrast, when RSV is valued at above $1, the additional collateral will be used to purchase and burn RSR from the secondary market, driving down the supply.
Arbitrageurs can benefit from this mechanism when RSV is valued at above $1.00, by buying RSV at $1.00 from the Reserve smart contract using RSR, and then selling it at the current market price to net the difference as profit. This option is only available to RSR holders and is currently one of the main drivers for holding RSR tokens.
Can I earn money with Reserve Rights?
Yes, you can earn money by trading & staking Reserve Rights (RSR). Buy low, sell high. RSR can be used to trade against other cryptocurrencies. Always trade responsibly. Often the price is influenced by RSR news. Buy RSR at Coinmerce.