"Resolv" is a digital currency (symbol: RESOLV) and a decentralized finance (DeFi) protocol aimed at providing a stablecoin with stable yields and low risks in cryptocurrency markets. Here is a detailed overview of it:
Core concept:
* USR Stablecoin: The main product of the Resolv protocol is the USR stablecoin, which is pegged to a value of 1 US dollar.
* Delta-Neutral strategy: Unlike traditional fiat-backed stablecoins (like USDT or USDC), USR is backed by native cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC). To maintain the stability of USR's price regardless of ETH and BTC price fluctuations, the Resolv protocol employs a 'Delta-Neutral' strategy. This strategy involves hedging against price volatility using perpetual futures contracts, offsetting gains or losses in the spot price of the underlying assets.
* Stable yield: Resolv aims to provide stable yields from cryptocurrency markets while minimizing exposure to price volatility. This is achieved through a combination of staking rewards and funding fees from perpetual futures, along with optimized collateral management.
Main components of the protocol:
* USR (Stablecoin): The currency aims to maintain a stable value against the US dollar. Users can mint or redeem USR based on collateralized assets.
* RESOLV (governance and utility token): It is the native token of the Resolv protocol. It plays a key role in:
* Governance: Allows token holders to propose and vote on protocol decisions and direct its development.
* Risk-sharing mechanisms: Contributes to risk-sharing mechanisms and liquidity provision.
* Leveraged Yield Farming: Supports the engineering of leveraged yield farming on the platform.
* RLP (Resolv Liquidity Pool): Acts as a decentralized insurance layer. This pool absorbs risks associated with the protocol (such as liquidation losses and negative funding rates) to protect USR holders and ensure the stability of the stablecoin. RLP holders receive high returns for bearing these risks.
How does Resolv work?
* Minting USR: When a user mints USR, they deposit assets like ETH or BTC as collateral.
* Collateral management: The protocol then manages these collaterals, storing a significant portion to earn staking rewards and using the remainder in delta-neutral hedging strategies (for example, opening short positions in perpetual futures).
* Profit distribution: Profits resulting from staking rewards and funding fees are distributed daily among USR and RLP holders.
Key features:
* Greater transparency: As it is backed by native cryptocurrencies, Resolv offers greater transparency compared to traditional asset-backed stablecoins.
* Not dependent on fiat reserves: Resolv breaks the dependence on traditional fiat reserves, making it more decentralized.
* Multi-chain support: Resolv supports integration with various blockchain networks, increasing its accessibility.
* Dynamic Ecosystem: The protocol aims to integrate with other DeFi platforms to enhance the utility and adoption of USR.
Summary:
Resolv offers a new approach to stablecoins, focusing on stability and decentralization through a delta-neutral strategy. It aims to provide sustainable yields for users while protecting the value of stablecoins from significant market fluctuations, thanks to its design.