Topics Altcoins
Bybit Learn
Bybit Learn
Intermediate
Feb 9, 2022

Reserve Rights (RSR Coin): The Promise of a Stable Future

Without a doubt, Bitcoin has paved the way for digital currencies. Since its inception, thousands of cryptocurrencies have entered the market. According to crypto payment gateway TripleA, there were 300 million crypto users worldwide as of 2021, and over 16,000 cryptocurrencies are active as of this writing. 

The crypto space experienced aggressive growth over the course of the decade, and there’s plenty of room for growth still. However, limitations such as volatility and scalability have divided the larger public into two camps: those who accept digital currencies, and those who don’t.

With its ambition of scaling the crypto industry to universal acceptance and usage, the Reserve network team developed a unique dual-token stablecoin protocol in 2019. This article describes everything you need to know about Reserve Rights and the RSR token, which has recorded an impressive 1,290% increase since it was established.

What Is the Reserve Rights Project?

According to its developers, two pillars form the foundation of the Reserve Rights project. First is the conviction that access to a reliable currency should be a fundamental human right. Second is the belief that with persistence and time, hyperinflation can become a thing of the past. Motivated by these optimistic convictions, the Reserve network team has been working hard to ensure global access to stable and reliable currency. 

The core focus of the Reserve Rights token (RSR) is reducing and eliminating the devastating effects induced by hyperinflation and currency devaluation on traumatized economies. The protocol proposes to achieve this goal by employing a peer-to-peer (P2P) approach that eradicates the need for external regulatory monitoring, a drawback typically associated with conventional economic models. 

What Is RSR?

RSR is a governance token on the Reserve network that allows users to vote for or decline suggestions. These votes in turn help define the governing body’s mode of governance (either centralized or arbitrarily decentralized). 

How RSR Works

The Reserve Rights protocol is built on the Ethereum blockchain. One of its primary focuses is to beat volatility and sustain a stablecoin called RSV. The team has devised a dual-token stablecoin protocol which comprises two components:

  • RSV (Reserve stablecoin)
  • RSR (Reserve Rights token)

RSV is pegged to the U.S. dollar, so it has to sustain its circa $1 value consistently. The Reserve protocol achieves this in a very innovative way.

When the RSV token drops below $1, the protocol is triggered into buying more RSV, pulling the price back to $1 on exchange sites. In the event that the RSV token rises above $1, the protocol automatically sells excess or newly minted RSV, bringing the price back down to $1. 

RSV is used frequently in daily transactions, and Reserve strives to maintain the $1 threshold, while RSR functions as an investment that primarily helps conserve the fixed value of the RSV. Reserve stablecoin is remotely substantiated by assets called collateral tokens. All these investments are kept together by what is recognized as the Reserve smart contract.

What Is RSR Used For?

As opposed to RSV, RSR is quite unstable and is mainly used in maintaining the value of RSV. Given a situation where the value of RSV drops below the $1 threshold, users purchase extra RSV at discounted rates via smart contracts sold. After they buy more RSR at a trade ratio of 1 RSV:1 USD, RSV’s price shoots back up.

In a situation where the value surges above the $1 target constant, excess RSV is sold and swapped for RSR or other tokenized assets, which pushes RSV’s value back down to the expected $1 mark.

The RSR token is used to revive the market when the value of assets owned by the Reserve protocol falls to levels that threaten the existence of RSV. This causes an increase in the supply of RSV, which leads to a drop in the demand for RSR. The Reserve vault serves as RSV’s storage platform.

The Reserve App 

The Reserve app is the only major forum offered by Reserve for saving, sending and receiving money. This app is increasingly being used in Venezuela, a country currently undergoing severe hyperinflation. On July 8, 2020, the Reserve app became the fourth-most downloaded finance app in the country.

Most Venezuelans conduct transactions in U.S. dollars. Users deposit Venezuelan bolívares, their official fiat currency, and receive U.S. dollars almost immediately on the Reserve app. Rather than carrying bundles of cash around, users can easily purchase goods and services via electronic payments. 

The app also provides a feature that enables users to convert their money into a reliable currency like the U.S. dollar to downplay the hazard of continued inflation, thereby preserving value. Apart from Venezuela, Colombia and Argentina also use the Reserve Rights network.

Key Features

Dual-Token System

This system comprises the Reserve Rights token and the Reserve stablecoin, which are interlinked by an arbitrage system that comprises two main processes: minting and stability. These techniques proffer remedies to the problems caused by inflation and hyperinflation.

No Third-Party Interference

Because of its varied asset backing, Reserve Rights is completely shielded from government legislation, interference, rulings and functions.

Real-Life Application

The Reserve Rights platform solves a pressing need in society by providing protection of assets, stability, ease of transactions, and financial security to people and businesses in areas hit by inflation.

Asset-Supported Currency

Another distinctive characteristic of this platform is the use of smart contracts to regulate stablecoin distribution, which is then substantiated using a basket of cryptocurrencies. This is in sharp contrast to several other stablecoins which are backed up by fiat currencies under the strict supervision of a stablecoin issuer.

RSR Tokenomics

Note: Figures below are accurate as of this writing, and are approximated up to two decimal places.

Total Supply — 100 billion RSR tokens

Circulating Supply — 13.1 billion (13% of total supply)

Market Capitalization — $233 million 

24-Hour Trading Volume — $14 million

Price — $0.018 per RSR token

Pros and Cons

Pros

Dual Token Setup: This attribute puts the Reserve protocol in the limelight — together, RSR and RSV create security and a solid hedge against volatility.

Asset Preservation: People living in countries experiencing hyperinflation can now save assets with the RSR stablecoin by converting their local currencies into RSV, and transacting directly with it at a rate of 1 RSV to 1 USD.

Proof of Work: Reserve Rights has gone beyond just looking good on paper to actually testing out their vision in real spaces. Countries like Venezuela, Colombia and Argentina can already feel its effect. The platform oversees about 15,000 transactions every day, which amounts to about $1.5 million.

Democratized Governance: Another advantage of Reserve Rights is the control structure within the network. Decision-making isn’t limited to the developers. Instead, it’s shared among token holders, thus creating a sense of belonging and participation that aids community-building.

Real-World Applications: Reserve Rights focuses on helping people in countries ravaged by hyperinflation. It’s also structured so that unbanked individuals can enjoy financial services like everyone else.

Cons

Competition: Competitors such as USDTUSDC and BUSD already dominate the market, making it an uphill battle for RSV to claim market share.

Early Stage: The platform is still in its development stage. While the project’s idea, vision and structure look promising, it still has a long way to go. Some projects have excellent vision but end up never living out their promise.

Funding: While a couple of angel investors and capital ventures are backing the project, it’s still uncertain whether the team will receive enough funding to achieve its goals.

Is Reserve Rights Trustworthy?

The Reserve Rights platform has proven to be trustworthy. From the credentials of its core team to the actual proof of work, they’ve been able to show results in at least three countries now.

Reserve Rights also runs a transparent platform, holding itself accountable to the public and creating a governance system within the network that confers the power of decision-making on its token holders.

Is Reserve Rights a Good Investment? 

As Reserve Rights is still in its development stage, there’s not enough data to tell whether it’s a good or bad investment. We suggest employing a three-pronged approach: technical, sentiment and fundamental analysis to determine if this project is for you.

RSR is currently undervalued, and is believed by some investors to be a good project based on its real-life applications and future projections. It wouldn’t be a bad idea to buy the dip and HODL, as the RSR project is here to stay. (Editor’s note: As with any cryptocurrency, make sure to perform your due diligence before making any purchase.)

Buying RSR

RSR tokens can be traded as a derivative instrument on popular exchanges. At Bybit, derivative trading is simplified by pairing the tokens with the world’s most popular stablecoin — USDT. The step-by-step process of trading the RSR/USDT perpetual contract on Bybit is as follows. 

Step 1

If you already have an account, you can skip this step. If not, Register on the Bybit exchange by entering a few personal details and completing the quick verification process.

Step 2

On top of Bybit’s home page, click Derivatives –> USDT Perpetual –> RSR/USDT. As illustrated in the screenshot below, you’ll see the trading terminal and the Buy/Sell zone at the extreme right.

Bybit’s Fiat Gateway
Source: Bybit | RSR/USDT

To trade the RSR/USDT derivative, you must first deposit USDT as collateral. You may acquire USDT through Bybit’s Fiat Gateway, deposit USDT from other wallets, or trade other crypto tokens for USDT.

Step 3

You can trade the asset class using market, limit or conditional orders, and even use up to 10x leverage if you wish to. If you’re using a limit order, which we recommend, enter the price at which you want to buy the RSR token and the number of RSR tokens you wish to buy. Click on Buy or Sell, based on your analysis. Make sure to use appropriate risk management techniques, like placing accurate take-profit or stop-loss orders.

Start trading Reserve Rights (RSR) today!

Closing Thoughts

As lucrative as trading in the cryptoverse can be, it sees a constant influx of innovations and project proposals. Some find their niche and thrive, while others are eliminated before they’ve found their footing. Still others fade out after a brief period of hype. 

Looking at the Reserve Rights project and what it hopes to achieve, it’s safe to say RSR is a token that’s worth further observation. Although the Reserve Rights network has yet to achieve many of its goals, we see definite potential in its clearly laid-out structure and achievements to this point.