Review on Reserve Rights by Fanuel PORPORTY
The stablecoin which ultimately aims to self-regulate, without necessarily having to rely on fiat
Reserve is one of the most low-key projects in the cryptosphere. it is a stablecoin, well like no other. To begin with, RSV differentiates itself from the rest in that it is backed by heavyweights in the cryptosphere. This new stablecoin is developed according to a model with 2 tokens: the RSR and the RSV. The RSR is a utility token which guarantees colletarization of the RSV; it allows its holder to participate in the governance of the project and gives him the right to play an arbitration role. When the RSV price is below the target value, the protocol encourages users to buy tokens to increase the price; conversely, if the price is higher than this value, they are encouraged to create new RSVs to lower the price.
The Reserve project is quite simply a challenge. If the project wins its bet, it would prove that stablecoins can exist without having to rely on fiat or any asset. Reserve could thus give the US Federal Reserve a hard time when it comes to conquer the US market.
Pros
- Project backed by the Coinbase exchange, Sam Altman, and billionaire Peter Thiel.
- Reserve is already available in Venezuela and Argentina.
Cons
- Strong competition: The capitalization of dollar-backed stablecoins reached over US $ 20 billion as of Oct 2020.
- The Maker protocol offers the same type of stablecoin called DAI which is supported by one or more collaterals.
