Oct. 19, 2022: The Reserves Have Arrived 🅡🫡
$RSR's RTokens Launches in Bogota + Passes Curve Governance
Reserve has sailed through Curve’s governance, well timed to coincide with their big RTokens launch event in Bogota.
If you’re unfamiliar with Reserve, we’d recommend you review our full write-up of the protocol and its underlying team/technology back in August.
The TL/DR: Reserve is providing solutions for inflation in countries where it is needed the most. RTokens allows their users to permissionlessly launch their own stablecoin-powered economies.
It’s an ambitious project — the “flatcoin” is widely considered a missing piece of cryptocurrency. It’s elusive because it’s difficult to solve…
We suspect Reserve has the track record to actually solve such grand problems because they’ve actually been walking the walk. In the prior article, we noted to some astonishment they’ve been moving ~$5MM daily in actual commerce. Not speculation, but actual commerce.
Note: the prior tweet tallied cumulative TX’s in error by a factor of 10x. Lest you accuse them of being reckless exaggerators, a cursory glance at register.app makes clear their figure of ~$5MM daily volume is in fact under-exaggeration as they are quickly approaching $10MM.
With a steady base of customers across Latin America, ETH Bogota was an ideal platform to launch their RTokens protocol.
RTokens already have one flagship user in MobileCoin’s new eUSD, a data-protecting stablecoin fungible through the Moby app.
Those of you outside of Latin America may only care about whether this will help lubricate the flywheel. In one of their several videos from Bogota, Thomas Mattimore (aka @Mattimost), head of platform at Reserve, articulated their Curve strategy:
“We have acquired a bit of Curve governance power through the Convex token, and as a result, we plan to incentivize liquidity of rTokens in Curve trading pools.”
The entire talk is very informative and worth a listen. The team details their vision to architect their technology to be safe and stable on the timeframe of centuries, not quarters, inspired by Byzantine Emperor Alexios I Komnenos. Throughout the talk they review the technical design decisions motivating RTokens in extreme detail. The team has done their homework on the deepest challenges in DeFi, and given careful consideration to building a secure and resilient platform to address these issues.
Additional information about their plans on Curve from their governance post, which includes a link to their Certik audit.
In total they’ve accumulated nearly 650K $CVX, up from the 450K from our prior article.
This puts them in 9th place on the DAO CVX leaderboard.
Their Curve pool was seeded with a few hundred thousand worth of liquidity earlier this month. Being built against the FRAX-BP, we should expect to see this receive incentives from FRAX.
Already on Convex as well…
In case you missed it, pools paired against FRAXBP are ascendant on Curve.
FRAXBP pools could also see an uptick in trading volumes, given another recently passed governance proposal to reduce fees on the pool to a mere 1 bps. But that’s a subject for another article…
If you’re interested in building out your own app against RTokens, they’re sponsoring $250K in prizes in their upcoming Gitcoin hackathon event, with workshops kicking off tomorrow morning.
For anybody interested in learning more about Reserve, we highly recommend watching through the several hours of video from ETH Bogota. If your line chef at McDonalds is ready to fire you for watching YouTube all day, then perhaps best to start with this shorter video as you bike to work.
Of course, nothing here is financial advice… we hope this merely serves as a good jumping off point for your further research. Let us know what you find in the comments!
Disclaimers! Author has no stake in $RSR. Thanks to @Mattimost for reviewing!