Reserve Rights mainnet launch timing and details: Is RSR token price jump sustainable?
Despite the Reserve protocol going live on 10 October as was predicted, the reserve rights (RSR) crypto dropped.
According to CoinMarketCap, RSR was trading down by 6% at $0.00687 earlier today (11 October).
The ERC-20 and native token of the Reserve protocol, RSR enjoyed a rise in value over the last week of September in anticipation of the upcoming mainnet/protcol launch.
The RSR token had been enjoying a rise of between 33% (on 23 September) and 29% (on 26 September), however, as of 27 September, it had slumped at one point by 5.86% and was trading at $0.007497. Nonetheless, RSR started October with a rise of 0.50% in value to $0.009687, according to CoinMarketCap.
RSR to USD
The two functions of the RSR crypto
The crypto has two main purposes for the Reserve protocol – “insuring Reserve stablecoins (RTokens) through staking and governing them through proposing and voting on changes to their configuration”.
In addition, the Reserve protocol has been described as a pool of stablecoins that are designed to reduce risk through diversification and decentralised governance.
With five audits either finished or nearing completion, the mainnet launch of RSR took place in October at the Reserve protocol launch event in Bogotá, Colombia, on 10 October.
The mainnet launch, as the official Reserve protocol website described it, was “the launch of the full Reserve protocol on the Ethereum mainnet”.
What is your sentiment on BNB/USD?
1/4 Reserve Protocol is delighted to announce the next chapter.
— Reserve (@reserveprotocol) September 20, 2022
With five audits completed / near completion, the deployment of the full protocol begins in October ????
We invite you all to our launch event in Bogotá to hear all about it. pic.twitter.com/8quSFQFwph
How does RSR maintain Reserve protocol’s stablecoin?
Unlike the stablecoin tether (USDT), the Reserve network’s stablecoin, reserve (RSV), is not backed by reserves but relies on RSR to “perform an arbitrage loop” that helps maintain the price of RSV to around $1.
This is what is referred to as an algorithmic stablecoin, which has gained a lot of negative attention since May 2022 when terraUSD (UST), another algorithmic stablecoin, lost its peg to the US dollar.
Founded by several tech investors, including CEO Nevin Freeman, RSR is available to buy on Binance (BNB), the world’s largest cryptocurrency exchange by trading volume, and KuCoin (KCS), the self-proclaimed people’s crypto exchange.
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