say crypto goes through a bear market, and your volatile assets' price stay stable or decline in price - you might not have any revenue to share with stakers for insurance.
The Reserve Protocol allows RTokens to have an insurance layer with Reserve Rights (RSR). RSR holders can basically put their RSR into an insurance pool for your RToken (but the RToken creator/DAO will have to reward them for doing so, or they won't do it).
OK so If I create rtoken with some yield from the mixture of assets. This yield will be distributed to who exactly? Is it Rtoken creator, RSR staker and app user? Do I need to figure what kind of split in percentages there will be?
It is fully customizable, and you can really go as wild as you want. Most probably, you'll want to distribute RToken revenue (the yields) to (a) the RToken holder and (b) the RSR stakers initially, but you can also build an RToken treasury (from which you can then later pay whatever you want).
I kind of like the idea of slowly building the treasury to later do things with. So you'd use the treasury funds to buy more volatile assets? What's the goal behind that?
Thats like acumulation of the volatile assets to create bigger yield, wouldnt that work?
Oh, so you're basically placing a bet that those volatile assets will go up. If they do, more yields for the holders/stakers. If they don't, no biggie (since they were excess anyway) - right?
Yeas treasury should be used to place that bet as all of the assets should rise in the long term
Hahaha, I love the conviction.
So to speak.
No LUNA will happen to RSR lol
Ballsy long ranger style.
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