#Resolv | Crypto Encyclopedia Chapter 17 💎

RESOLV is listed on Binance TR 📈

Its current price is approximately 11 TL. With this listing, let's take a look together at what RESOLV is and what it does đŸ€”

Resolv offers USR, a stablecoin pegged to the USD but not backed by fiat. It only uses ETH and BTC as collateral, meaning it doesn't have dollar reserves like USDC/USDT. It only has ETH and BTC collateral. Furthermore, it is not centralized or algorithmic; it is completely on-chain đŸ”č

What is USR?
1 USR = 1 USD.
It is minted and redeemable 1:1 with ETH/BTC collateral đŸ”č

What is RLP?
It is an insurance layer that protects USR. Excess collateral creates the RLP. It offers higher returns but also carries risks đŸ”č

So how does USR always stay at $1?
The price of ETH and BTC can fall, but Resolv balances this risk. How? When buying ETH and BTC, it also opens a short position at the same time. If one falls, the other profits. Thus, the total value of the system remains constant đŸ”č

What about the risks?
1ïžâƒŁ Futures costs: If the market moves in one direction for a long time, the funding fees for hedge positions can increase. This can cause losses for the RLP pool đŸ”č
2ïžâƒŁ Liquidity risk:
In case of sudden increases in demand or panic sales, there is a possibility that the RLP may not be able to provide sufficient insurance đŸ”č
3ïžâƒŁ Extreme market movement risk:
If ETH or BTC falls very quickly and the hedge positions cannot be adjusted in time, the system can suffer losses. The system can be particularly strained during sudden crashes đŸ”č