Resolv is a decentralized financial protocol that creates a stablecoin USR pegged to the US dollar. By leveraging native support from Ethereum and Bitcoin, combined with perpetual futures hedging and a liquidity insurance pool, Resolv ensures the stability and transparency of USR, providing users and the DeFi ecosystem with a secure and trustworthy medium of value.
What is Resolv
Resolv is a decentralized financial protocol aimed at maintaining the USR (Unified Stable Reserve) stablecoin pegged to the US dollar through innovative mechanisms, providing users with a secure, transparent, and efficient stablecoin ecosystem. Resolv ensures the value stability and over-collateralization characteristics of USR through native support from Ethereum and Bitcoin, combined with short perpetual futures hedging and liquidity insurance pools, providing a reliable trust infrastructure for the DeFi ecosystem.
The core goal of Resolv is to break the dependency of traditional stablecoins on centralized assets, utilizing decentralized ETH and BTC as reserve assets, achieving price stability through intelligent financial mechanisms while providing users with a flexible minting and redemption experience. Whether for individual users or institutions, Resolv is committed to providing a trustworthy, scalable stablecoin solution to support the development of the Web3 financial ecosystem.
Core features
The design of Resolv revolves around stability and user autonomy, and here are its main features:
Issuance and redemption of USR
USR is a stablecoin pegged to the US dollar at a 1:1 ratio, allowing users to mint USR by depositing ETH or BTC as collateral at a 1:1 ratio. Similarly, users can redeem USR at any time for an equivalent value of collateral.
This mechanism ensures the transparency and operability of USR, allowing users to freely participate in the creation and destruction of stablecoins.
Sufficient asset backing
Resolv ensures sufficient collateral for USR by holding ETH and BTC as reserve assets.
To cope with price fluctuations of ETH and BTC, Resolv uses short perpetual futures positions to hedge and dynamically adjusts to maintain the value stability of USR. This financial engineering approach effectively reduces market risks and enhances the robustness of the protocol.
Resolv Liquidity Pool (RLP)
RLP (Resolv Liquidity Pool) is a specially designed liquidity insurance pool aimed at providing over-collateralization support for USR, further enhancing the security and stability of the protocol.
Users can mint or redeem RLP tokens at a 1:1 ratio with collateral (ETH or BTC). The existence of RLP provides an additional liquidity buffer for USR, ensuring the system's resilience during market fluctuations.
Technical mechanisms
The technical architecture of Resolv combines advanced tools of decentralized finance with blockchain technology to ensure efficient, secure, and transparent operations:
Decentralized reserve: Managing ETH and BTC reserve assets through smart contracts ensures that all operations are publicly verifiable.
Price hedging mechanism: Utilizing decentralized derivatives markets (such as perpetual futures) to hedge the price fluctuations of ETH and BTC, maintaining the pegged value of USR.
Liquidity insurance pool: RLP provides additional stability assurance for USR by dynamically adjusting collateral ratios and liquidity supply.
User-friendly design: The minting and redemption process is simple and intuitive, allowing users to seamlessly interact through standard DeFi wallets (such as MetaMask).
Innovation points
Native support for ETH and BTC
Resolv is one of the few stablecoin protocols that directly uses ETH and BTC as reserve assets, avoiding reliance on centralized assets (such as USDC or USDT), thus enhancing decentralization.Dynamic hedging mechanism
Through short perpetual futures hedging, Resolv is able to maintain the price stability of USR during market volatility, demonstrating advanced financial engineering capabilities.Over-collateralization of RLP
The design of RLP provides an additional safety buffer for USR, allowing it to remain stable under extreme market conditions.User autonomy
Users can freely mint and redeem USR and RLP, with operations being completely transparent. All collateral and reserve assets are managed by smart contracts, ensuring that there is no need to trust third parties.
In summary
Resolv is an innovative decentralized stablecoin protocol that successfully creates the USR stablecoin pegged to the US dollar by using ETH and BTC as reserve assets, combining short perpetual futures hedging and the RLP liquidity insurance pool. The protocol, with its high degree of decentralization, transparency, and stability, provides a reliable trust infrastructure for users and developers. Whether in the daily applications of the DeFi ecosystem or in institutional-level financial scenarios, Resolv demonstrates strong potential to become an important part of the Web3 financial landscape.
