Introduction to Reserve Protocol¶
The Reserve Protocol is the first platform that allows for the permissionless creation of asset-backed, yield-bearing & overcollateralized stablecoins on Ethereum. The end goal of the Reserve Protocol is to provide highly scalable, decentralized, stable money in contrast to volatile cryptocurrencies such as Bitcoin and Ether.
In our view, clear flaws can be demonstrated with many existing stablecoin designs. In the 2018 Reserve Protocol whitepaper, we present arguments for why a widely used stablecoin should implement an exchange rate peg to a fiat currency first and a basket of assets later, using off-chain foreign collateral that has been tokenized by a diversity of issuers.
Furthermore, we believe that open exploration and competition can lead to the discovery of the best type of basket and governance system for ideal on-chain money. There's a lot to explore, and it's better not to keep that under the control of the initial founding team. For this reason, the Reserve Protocol is entirely permissionless—allowing anyone to deploy a Reserve stablecoin (RToken) with their preferred collateral basket, governance system and revenue distribution.
Watch this introduction video to know exactly why we built Reserve Protocol: