Introducing RSR Dollar - $RSD
A stablecoin that directly supports the Reserve Protocol by creating deflationary pressure to $RSR via token burns and aims to become the deepest source of liquidity against $RSR and the go to pool for Defi users.
Finance the future of stable money and the battle against
hyper-inflation supporting the Reserve ecosystem.
RSR Dollar ($RSD) is a stablecoin that directly supports the Reserve Protocol by creating deflationary pressure to $RSR via token burns and aims to become the deepest source of liquidity against $RSR and the go to pool for Defi users.
Other than burning $RSR, one of the main goals of $RSD is to demonstrate that a successful burning mechanism can be implemented in RTokens and it’s already built into the protocol for future uses.
Part of the yield generated by the stablecoin that is assigned to be burned will be automatically sent to a burn address by the protocol in the form of $RSR and no human interaction is required to do so.
RSR Dollar is a community project and each decision is taken as a collective. If you want to take part in the evolution of the RToken and its growth you can reach out to us on Twitter: @RSRDollar or directly join the Discord Server and Telegram Channel.
What is the mandate?
A USD stable coin which directly supports the Reserve Protocol by creating deflationary pressure to $RSR via token burns and aims to become the stable coin of choice to pair with $RSR on decentralized exchange liquidity pools.
Why is that the mandate?
The focus of the RToken is on supporting the Reserve Ecosystem, each subdivision of the yield generated by the underlying assets has its utility in doing so. Whether it is the $RSR burned to create deflationary pressure, the RSR directed to stakers to insure $RSD and the percentage directed to the treasury which is all devolved in favour of creating a optimal enviroment around $RSD and $RSR, thus increasing their usage and market cap. $RSD becoming the main stablecoin paired with $RSR would substantially increase the tokens burned.
Who are the deployers?
Even though it’s a collective effort and each decision is taken within the community, we are three individuals who take care of the project and watch over the treasury with a Multisig Safe Address.
Ottokili had the original idea of a $RSR Burning RToken, mainly takes care of the initiatives around the RToken social media side, graphic design and RToken architecture.
JackOfSwords joined in the effort of deploying $RSD and mainly takes care of the initiatives around the usage and growth of the treasury and RToken architecture.
SMallinson as OG active community member in the Reserve Community joined in the effort of developing the RToken idea, taking part in its deployment process and making the treasury management safely possible with a multisig wallet between the three of us, mainly takes care of illustrating the aspects around the RToken.
As a community project, RSR Dollar $RSD was also deployed with the contribution of zduck and four other anonymous contributors.
Why did we decide to deploy the RToken?
As passionate individuals in the Reserve community we are always looking for ways to enhance the Reserve ecosystem. We thought that a burning mechanism for $RSR that creates deflationary pressure was a great way to achieve that. $RSD sets an example for future RToken deployers that they could integrate burning in their RToken architecture or simply integrate a small percentage of $RSD itself in the backing assets to actively burn RSR and aid RSR Dollar in achieving the goal of creating deep sources of liquidity in Defi for the Reserve ecosystem.
What’s in it for us?
We are happy to create a mechanism that will have an impact on Reserve’s mission of creating stable currencies and fight hyperinflation, we believe that depending on $RSD’s adoption, we can create a scenario that really favours the Reserve Ecosystem.
Anyone invested in Reserve would benefit by $RSD effects, both for the objective of burning $RSR and creating liquid pools on decentralized finance.
We are enthusiastic to deploy a “tool” that could give anyone the possibility to additionally support the Reserve Ecosystem, even if they have no knowledge of liquidity pools and decentralized finance.
Collateral Asset Backing
What does the initial collateral backing for this RToken look like?
60% Convex/Curve eUSD+FRAXBP pool.
20% fUSDC - Flux USDC.
20% fDAI - Flux DAI.
Why was this collateral backing chosen?
We chose enough assets to diversify the collateral basket without heavily impacting the cost of minting $RSD. In the future a more diversified basket could be picked preferring assets that directly influence the Reserve ecosystem (e.g. RTokens related backing assets only) while keeping the yield high enough to successfully fulfil the mandate of $RSD.
Should governance keep the collateral backing as it is or update it whenever it can?
Governance should aim to keep a diversified enough basket that provides a high yield and is the most influenced by the Reserve Ecosystem.
What is the estimated APY with the initial collateral backing?
Around 12% - 6% towards burning $RSR.
What will the initial revenue distribution look like?
50% RSR Burn
20% RSR Stakers
Why was this particular distribution chosen?
This distribution was chosen to maintain the focus on the main goal of $RSD, which is to burn $RSR, while having the necessary protection from $RSR over-collateralization and a meaningful percentage to the treasury to over time make an impact on the secondary goals of the RToken (Which affects $RSR Burning).
We made the decision to deploy the token with a high percentage directed to the treasury to efficiently kickstart the strategies around it. The goal of the first period after deploying $RSD is to grow marketcap an keep compounding the treasury, once that’s developed enough, we can put it to use to further support $RSD and $RSR burning.
In the future, once that’s achieved, governance can look into lowering the percentage directed to the treasury and increasing the one of burned $RSR, but at the moment we believe that creating a strong enviroment around $RSD is much more important than the initial burned $RSR, insuring the success of RSR Dollar will accomplish a much higher percentage of burned $RSR on the long run.
A deeper look into the treasury:
Treasury address: 0x1D77e95a5feC42e47aBFfbd4218B6f17112E4330
We decided that the goal of becoming the stable coin of choice to pair with $RSR on decentralized exchange liquidity pools would give an incredibly more important usecase for the RToken and increase its chances of success in its mission, Eventually a DAO can be formed to manage these funds optimally. We individuated different initial strategies we could take with the treasury, that could change over time with the community decisions.
Curve Finance - The treasury can buy $CRV directly to stake on Curve.fi and accumulate $veCRV.
The $veCRV provides voting rights for which curve pools are incentivised with additional $CRV emissions.
The treasury could then direct this to vote for our desired pool - eg. RSD/RSR/USDC
It will however take time to accumulate enough $veCRV to make an impact.
Convex Finance - Instead the treasury could purchase $CVX. Convex Finance is a building-block on top of Curve and the protocol already owns significant amounts of $CRV. Here the treasury would stake and lock $CVX to influence where Convex directs its $veCRV votes.
Here we could once again direct them to a created pool eg. RSD/RSR/USDC
Frax Finance - Another additional option is to purchase Frax share ($FXS). Staking and locking $FXS for $veFXS can once again be used to vote and further incentivize a created curve pool. The pool would need to incorporate $FRAX to gain the maximum benefit eg. RSD/RSR/FRAX pool.
Sushiswap LP - We could also directly use the treasury to build Liquidity in a sushi swap LP pool. As the treasury builds up its $RSD reserves it could buy $RSR and pair it directly on sushi swap slowly increasing it over time proportionate to the growth of $RSD.
A problem with this option is there won’t be any additional yield incentives besides trading fees.
However the treasury could apply to join Sushi’s Onsen program and partner with sushiswap to provide additional incentives to the pool.
Dao Airdrop - Whichever route the treasury decides it could also look at the possibility of launching its own DAO governance token for the treasury itself. ($RSR stakers would still have governance over $RSD) - This could be used to incentivize whichever LP pool has been created with additional yield and perhaps reward early minters of $RSD and early LP providers.
Whichever path is taken the number one priority is to build the treasury (by having as much $RSD minted as possible) to a point in which it can be effective in its secondary mandate. To make $RSD the deepest source of liquidity against $RSR and become the go to pool for Defi users. The deeper the pools the larger the burn.
How does this RToken differ from competitors?
Introduces a $RSR burning mechanism for RTokens.
A collateral basket that leans towards “supporting” the Reserve Ecosystem.
Supports Reserve in the battle against hyper-inflation.
Ultimately generates value to $RSR holders.
$RSR over-collateralization for insurance.
A built in governance method to manage the backing assets of the stablecoin.
Why will people use this RToken?
Safety: $RSD is a stablecoin pegged to the USD, always redeemable for its underlying assets, over-collateralized by $RSR and secured by the Reserve Protocol.
Philantropy: By holding $RSD you burn $RSR which on the long term will increase the value of Reserve’s slow wallet thus indirectly making an impact on their mission of creating stable currencies as a human right.
Value: Burning also increases the monetary value of everyone that invested in $RSR.
Community: $RSD aims to create a stablecoin that will support the Reserve Ecosystem in every aspect; burning $RSR, using backing assets related to the protocol and creating the deepest source of liquidity against $RSR.
Go To Market
Who do you see as the early adopters and advocates of this RToken?
Anyone that wants to have an additional way of supporting Reserve and its ecosystem.
Dedicated community members (Potential integration in other community projects).
Anyone that has interest in increasing the value of $RSR.
Future RToken deployers that want to dedicate a percentage of their RToken’s yield to burning can include $RSD in their backing assets.
What does success look like for this RToken?
A stablecoin that burns a significant amount of $RSR, is backed by assets related to the Reserve Protocol and has a strong impact in the creation of liquidity pools against $RSR.
Ultimate success would be actively impacting Reserve’s mission providing value to its ecosystem.
Why was this RToken name chosen?
“RSR Dollar” provides a direct connection to $RSR and the fact that $RSD aims to become the stablecoin of choice around it.
RSR - The burning mechanism is related to $RSR, the token tied to the Reserve Protocol.
Dollar - Pegged to USD
“RSR Dollar” is short and easy to remember and gives an immediate connection to $RSR and its community.
What does the logo look like?
Why was this logo chosen?
The logo is inspired by the RSR “#” look, morphed into a Dollar “$” symbol with red (burn-fire) brand colors.
What does the brand represent?
A way the community can support the Reserve Ecosystem and the mission behind Reserve while having $RSR burning as main practical focus.
Call to action
What is expected from the RToken’s governors?
To maintain $RSD diversified and align with the idea of keeping the collateral basket the most “Reserve related” possible keeping into account a good source of yield to fulfil the RToken mandate.
What can the community do to make this RToken a success?
The community should be the pulsing heart of this project. Bring ideas, participate in its evolution, discuss how the treasury can be used and how to most affect the Reserve Ecosystem.
Ultimately, if you believe in Reserve and if you believe in what RSR Dollar tries to achieve for it, you could potentially mint and hold some of your capital into it, integrate it in community projects and show enthusiasm in how the RToken future could be shaped.