RSR?
The Reserve protocol won't be offering a fixed yield like some other projects do. Instead, the yield will be dynamic based on some variables. This video explains best how this APY will be calculated.
Cool, Sinatra! In the last part of the video you say 100M revenue are generated from the RSX stablecoin as an example. Of course the APY will be dynamic and we get it. The revenue will be divided among RSR holders and we get it as well but could you elaborate how is that revenue being calculated? I'm sure there isn't a direct way to calculate it now but let's use your 100M example just to have an idea. What scale should we expect to have 100M revenue for the RSR stakers?
Good question. Assuming a 4% yield on collateral appreciation for rsr stakers totaling $100M implies a total collateral value of $2.5B ($100M / 4%). Then assuming a velocity (i.e., avg annual turns for stablecoins) of 10x implies a total transaction volume of $25B. A related question is how many reserve users would be needed to generate $25B in transaction volume? Challenging to estimate because the institutional/business transaction volume comprises the majority of volume (2/3rds if I recall correctly; $40M/mo from inst. and $20M/mo from retail users). We could use the same ratios for current stats. $60M in transaction volume per month, or $720M in annual volume, with 55k active users implies $13,100 in annual volume per user. $25B divided by $13,100 is 1.9m users. Of course, this assumes that inst users continue to drive the majority of volume…
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