Reserve aims to establish a stable, distributed stablecoin and digital payment system. Its stablecoin has the characteristics of self-regulating supply in combination with demand, and has the characteristics of 100% or more collateral support on the chain. The ultimate goal of Reserve is to create a universal store of value medium - especially in regions with unreliable financial infrastructure and/or high inflation. The Reserve project is supported by Peter Thiel, co-founder of PayPal, Sam Altman, president of YCombinator, and many influential investors in Silicon Valley and digital assets.
Reserve Rights Token (RSR) is mainly used to maintain the price stability of Reserve Token. Reserve tokens, the stablecoins issued for the Reserve system, can be held and used in the same way we use fiat currencies and other tokens.

Project Vision

The Reserve Stablecoin is a token based on the Reserve Protocol, also an ERC20 token, which has redeemable value backed by a reserve pool of assets called a vault. To understand the Reserve stablecoin, you must first understand that the Reserve Protocol network has three types of tokens: Reserve stablecoin, Reserve equity token (RSR) and pledged tokens.
Among them, the Reserve token is a stable currency, similar to the US dollar in real life, or USDT anchored to the US dollar. The remaining two tokens, Reserve Equity Token (RSR) and Pledge Token, are mainly used to stabilize Reserve. The Reserve Equity Token (RSR) is the value-capturing token of the Reserve Protocol, and it is also the supporting token when the value of the Reserve stablecoin's vault assets falls, which will be described later.
The pledge token is mainly the reserve pool asset of the Reserve Protocol network. It is not the native token of the Reserve Protocol, but consists of a variety of tokenized assets. Pledged tokens are assets that back the Reserve stablecoin, which will be stored in a smart contract. According to the relationship between the U.S. dollar and gold before decoupling, the Reserve stablecoin is similar to the U.S. dollar, and the pledge token is similar to gold.
In the design of the Reserve Protocol, it requires that the value of the Reserve stablecoin be backed by at least 100% of the pledged token value. The types of pledged tokens are not limited to cryptocurrencies, but also include tokenized commodities or equity. The combination of pledged tokens is relatively simple at first, and will be diversified later.
In the beginning, the Reserve stablecoin was defined as being pegged to the U.S. dollar. When the time is right, it will be decoupled from the U.S. dollar to achieve stability as a unit of account in the encrypted world.

Project Highlights

Reserve is a global stable currency (stable currency) and a digital payment system suitable for individuals and businesses in countries with high inflation.
Protect Assets
Reserve enables individuals and businesses in countries with high inflation to protect their assets by converting bad money into electronic money.
Cross-border remittance
Reserve makes cross-border remittance more efficient. Individuals can send money home directly across borders, and businesses have a stable currency that they can pay suppliers.
Easy Payments
Reserve enables businesses to replace high-inflation currencies with stable electronic currencies that are more easily delivered to international suppliers.

Application scenario

The initial version of the Reserve protocol will consist of a generally centralized fiat-pegged digital currency, with each protocol component gradually moving on-chain and off-chain over time Control of the founding team, eventually becoming fully decentralized. According to the plan, the Reserve network consists of three stages:
1. Centralization stage - Reserve tokens are backed by US dollars and held by trust companies.
2. Decentralized phase - Reserve tokens exist in a decentralized manner, backed by an ever-changing basket of assets, but remain stable in value relative to the U.S. dollar.
3. Independence Phase - The Reserve token is no longer pegged to the US dollar to stabilize its real purchasing power regardless of fluctuations in the value of the US dollar.
In this overview, we describe Phase 2, the decentralized phase, where the Reserve token is backed by a changing basket of assets in a decentralized manner, but remains stable in value relative to the U.S. dollar.
The Reserve protocol can be deployed on top of any smart contract platform, or on its own chain. Initially we will develop on the Ethereum network, but eventually we expect to achieve two-way synergy between Reserve tokens and other mainstream smart contract platforms.
The Reserve token has an initial target value of $1.00, but is designed with a long-term goal of de-pegging from the U.S. dollar.
Tokens
The Reserve Agreement is associated with three tokens:
1. Reserve Token - a stable digital currency that can be used as per our USD and other stable fiat The way money is held and spent.
2. Reserve Equity Token - A digital currency used to promote the stability of the Reserve Token.
3. Mortgage tokens - Other assets held by the Reserve smart contract to stabilize the value of Reserve tokens, similar to the US government using gold to stabilize the dollar in the past. The protocol is designed to hold collateral tokens worth at least 100% of the value of all Reserve tokens. Many collateral tokens will tokenize real-world bonds, properties, and commodities. As more classes of assets are tokenized, portfolios will start to be relatively simple and diverse.
How the Reserve token remains stable
If the demand for the Reserve token falls, the corresponding price in the secondary market will fall, and what will be the result?
Assuming that the redemption price of the Reserve pass is $1, if the price of the Reserve pass in the open market is $0.98, arbitrageurs will be motivated to buy them all, and then use the Reserve smart contract to redeem them in exchange for Collateral token worth $1. They will keep buying Reserve tokens on the open market until they are no longer profitable, which is when the market price equals the $1 redemption price.
The same scenario works in reverse when demand rises. If the Reserve token is priced at $1.02 on the open market, speculators will be happy to buy collateral for this emerging $1.00 Reserve token or Reserve Rights token (RSR) — (only if there is an excess mining pool) The latter may happen), and immediately sell it on the open market until it becomes unprofitable, that is, when the market price equals the purchase price of $1.
How the Reserve protocol is capitalized
The Reserve protocol holds collateral tokens backing the Reserve coin. When new Reserve tokens start to be sold on the market, the assets used by market participants to purchase new Reserve tokens are held as collateral assets. This process also allows Reserve tokens to maintain a 1:1 collateralization ratio even as supply increases.
Sometimes the Reserve protocol may set the mortgage ratio to be greater than 1:1. In this case, increasing the supply of Reserve tokens would require additional capital to maintain the target collateralization ratio. To this end, the Reserve protocol will create and sell Reserve equity tokens in exchange for additional mortgage tokens. Ultimately these over-collateralization will not go to waste - when the target collateralization ratio reaches 1:1, these over-collateralization will be returned directly to the holders of Reserve Rights tokens.

Related links:
https://www.qukuaiwang.com.cn/szhb/3262.html###