Bitcoin was created to give the average person a peer-to-peer economy and wealth storage that could provide financial autonomy and access to banking, especially for people living in places where financial services are distributed or non-existent.
In the last five years, there have been a number of blockchain projects aimed at reflecting the original Bitcoin projects, and the growing popularity of stablecoins still underscores the need for other financial models. One project that is starting to see some momentum is Reserve Rights (RSR), a binary symbol stablecoin platform consisting of the asset reserve Reserve Stablecoin (RSV) and the RSR symbol which helps to keep RSV prices stable through a. arbitration system.
Data from Cointelegraph Markets Pro and TradingView show that although RSR prices have been declining along with the broader market in recent months, the symbol has recently seen an increase in trading volume indicating a possible revival.
Three reasons for the increased demand for the RSR symbol are the expected introduction of the main network of reserve rights, the expectation of identification and the ability of RSV to maintain its connection to recent market fluctuations.
RSR mainnet startup
The biggest upcoming development for backup rights that has excited its community is the launch of the network in August.
Following the launch of the backup rights on the Ethereum (ETH) mainnet, the full potential of the protocol will be activated, including the ability for anyone to create stablecoins supported by baskets with ERC-20 tokens.
As well as being fully insured, stablecoins can be secured on the Code (RTokens) as a way to protect against the devaluation of collateral. RTokens can also generate revenue for their holders, which is an incentive for RSR owners to deposit their RSR on a specific RToken.
The income of the symbol holders comes from transaction fees, the revenue share with the issuers of insurance tokens and the return on the loans of the insurance tokens in the chain.
Opening the RSR network will also enable token staking. For most mortgaging rules that exist today, the main action is to lock tokens in a smart contract that prevents the holder from selling, but it does not really have any additional functionality for the ecosystem.
Once all the backup bookings have been launched on Ethereum mainnet, RSR will be able to place their tokens and secure and manage the network ⚖️
Let us go through all the information about RSR betting in our latest article https://t.co/hS8rojPo3z
– Reserve (@reserveprotocol) May 2, 2022
However, betting on the backup booking has a practical use for the booking because mortgaging an RSR token on a particular RToken helps to secure that token against insurance defaults. This means that if any of the insurance symbols default, you can resort to a mortgaged RSR to keep RToken connected.
In exchange for taking this risk, RToken’s revenue is shared with RSR stakeholders to ensure adequate collateral. The return offered by each RToken will depend on a number of factors, including the market value of the RToken, the revenue generated by the token, the percentage of revenue shared by RSR shareholders and the total amount of RSR wagered.
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Growing community and a successful stablecoin
The third factor that strengthens RSR is the continued growth of its community and its ability to RSV stabelcoin to maintain its connection amid recent fluctuations in the market.
At the peak of volatility in May when the TerraUSD Classic (USTC) was collapsing, the lowest RSV price was $ 0.9923. This means that RSV held better than the majority of stablecoins in the market.
As RSV maintains its connection, the Reserve Rights community recently exceeded 600,000 users of the Reserve app, which now provides access to more than 18,000 Latin American merchants who accept RSV and earn a monthly amount of over $ 100 million.
The team behind the protocol is also working to add support for users in Mexico, which has the potential to start joining a new group of RSV users.
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should conduct your own research when making a decision.
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