Will RSR reach $1, $10?
| Metric | Value | Trend |
|---|---|---|
| Current Market Cap | $93.7 M | Higher |
| Trading Volume | $2.5 M | Higher |
Will RSR reach $1, $10?
The Reserve Protocol aims to offer a stable cryptocurrency akin to fiat currencies like the US dollar. It operates with three primary tokens: The Reserve Token (RSV), The Reserve Rights token (RSR), and Collateral tokens.
The Reserve token’s goal is to align with the value of US $1.00, but it may deviate from this peg in the future. To counteract potential issues such as speculative attacks, the Protocol can adjust the redemption value of Reserve tokens, especially when the backing collateral tokens lose value.
These collateral tokens are a mix of cryptocurrencies or blockchain assets held to support the Reserve token’s value. They are diversified across different asset classes, issuers, and regions, ensuring the protocol always maintains a collateralization ratio above 1:1.
The protocol’s functioning relies on several components:
- The Reserve Manager maintains the Reserve token’s stability at $1, while the Vault Manager oversees the pool of blockchain assets, which are used to acquire Reserves when its demand dips.
- The Market Feed, comprising the on-chain Record Book and off-chain trusted Reporters, delivers real-time market data to the protocol.
The protocol was initially funded using Reserve Rights tokens in return for more collateral tokens, ensuring a collateralization ratio beyond 1:1. RSR, an ERC-20 token based on the Ethereum blockchain, is the utility token for the Reserve Rights and has two main functions: ensuring RSV’s price stability and acting as a governance token.
However, RSR’s performance as an investment has been underwhelming, with significant declines in value since its launch and over the past year. Its primary utility remains within the protocol with limited external applications.