Yesterday we said that we were going to talk about RWA in a special session. We talked about a lot of RWA projects before. Let’s first divide what we talked about before into categories for everyone to find easier. The first is stablecoin MKR, then layer1’s polyx, and the synthetic asset SNX. , UMA, lending CFG and GFI, etc. have all been discussed. Today we are talking about 2 projects, one is the second largest project in the same category as MKR, RSR is also on the stablecoin track, and the other is MPL, which is a private fixed income category. This is a new category, and of course there are others. Category, such as real estate, public fixed income, carbon credits, etc. However, currently the projects in other fields are relatively small, so we may talk about 2-3 together, so that everyone can have a horizontal overall understanding, and then we will look at See if you can find some projects that are more reliable and have potential.
First of all, let’s take a look at the first project, RSR. Its one-month growth is quite good, from 0.0016 to 0.0028, which is also a 70-80% growth. Its current market value is 140 million US dollars, and it is ranked in the top 200. Of course, compared with the market value of 1.3 billion of the leader of stablecoins, MKR, there is still a 10-fold gap.
Introduction
Reserve aims to build a stable, distributed stablecoin and digital payment system with a stablecoin that has the characteristics of self-regulating supply in combination with demand, as well as being backed by 100% or more on-chain collateral. Reserve's ultimate goal is to create a universal store of value - especially in areas where financial infrastructure is unreliable and/or inflation is high.
Project Vision
Reserve is positioned as a global stable currency to maintain asset value for users in high-inflation countries.
solution
Reserve reduces the risk of stablecoins through asset diversity and decentralized governance. There are two currencies in the protocol, one is RSV, a stable currency against the US dollar, which can be generated or destroyed by pledging USDC/TUSD/PAX. The other is RSR, which is the functional token of the entire system. In addition to being a voting governance token, its main role is to maintain the stability of RSV value.
How to stabilize, the mechanism is similar to maker
Reserve’s collateral assets include USDC, PAX, TUSD, etc. Normally, the price of RSV will be automatically adjusted by the open market to around $1. When demand drops, for example, the price of RSV on the open market is $0.98 and the redemption price is $1, arbitrageurs will be incentivized to buy RSV on the secondary market and redeem reserves worth $1, pushing up RSV. s price. When demand rises, if the price of RSV is $1.02, arbitrageurs will be incentivized to stake $1 of the asset to mint RSV and sell it on the market, lowering the price of RSV.
Token economy
It was issued in 2019, with a total amount of 100,000,000,000. Currently, 50,600,000,000 are in circulation, with a circulation rate of 50%. The current currency price is US$0.0028, and the peak was US$0.1186 (2021-04-17). From this point of view, it has dropped by 99 %, the token allocation is 20% to the team and 58% to the foundation, so the proportion held by the project side is too high.
Then look at TVL, which has 15 million US dollars. Compared with its market value, this ratio is a bit low. Compared with Makerdao, there is a big gap. TVL on Makerdao is 5 billion US dollars, while Maker’s market value is only 1.3 billion.
Looking at the data on dune, although we can see that it has increased in the market value of the entire stablecoin, the magnitude is not very large.
dune.com/reserve-protocol/reserve-protocol-overview
MPL (Private Fixed Income)
MAPLE is a private fixed-income RWA project. It has also increased by 100% in the past month, from 6 to 13. It has a market value of US$60 million and ranks 300+.
Let’s first talk about what private fixed income is.
Private fixed income refers to fixed income products that are not publicly traded. It is mainly aimed at qualified investors with risk identification and risk tolerance, and is issued and transferred in a non-public manner.
Introduction
Maple is a lending protocol that allows large centralized institutions to borrow undercollateralized loans from crypto asset lenders. Its unsecured loans focus on institutional lenders and corporate borrowers. In other words, through Maple, you can lend your assets to institutional traders.
As decentralized finance (DeFi) continues to subvert traditional financial models, protocols such as Compound and AAVE have laid a good foundation for decentralized lending, but they have done little to solve the problem of over-collateralization in the credit market. Maple Finance was built to introduce uncollateralized lending to DeFi.
The Maple protocol was launched on the Ethereum mainnet on May 12, 2021, as a decentralized credit market protocol that provides unsecured loans to institutional borrowers through its capital pool, while providing funds to lenders seeking sustainable returns. After the protocol launched, Maple allocated 5% of MPL tokens through the Balancer liquidity bootstrap pool and raised over $10 million in USDC as proceeds to fund the protocol. A week later, Orthogonal trading became the first representative to manage Maple’s $15 million USDC pool. In June 2021, Maple launched the Maven 11 capital pool, and so far the protocol has 3 liquidity pools that have processed 69 loans worth $535 million in one year of operation.
Products: several pools, one is a cash pool, one is a RWA pool, and there is an over-collateralization pool, etc.
Features of Cash Pool
Quick access to yields on U.S. Treasury securities: This service provides a quick way to access yields backed by U.S. Treasury securities and reverse repurchase agreements. The goal is to arrive at a net annualized yield at the current Secured Overnight Financing Rate (SOFR), after fees and expenses.
Fast registration for qualified investors: For qualified investors, this service allows them to complete the registration process in 10-15 minutes.
Manage withdrawals and accounting operations of lender accounts: Lenders can manage withdrawal operations and accounting records through the Lender Dashboard. Withdrawals are available every day of business in the U.S. banking system. In addition, lenders can download monthly interest statements at any time for recordkeeping and accounting operations.
Monitor and measure performance around the clock: The Lender Dashboard provides a real-time view of borrowers’ U.S. Treasury portfolios held by regulated brokers, as well as returns to date. This allows lenders to see compound interest updates in real time.
Designed by Maple with leading third-party partners: This service was designed by Maple in conjunction with Room40, experts in trading U.S. Treasuries. Room40 will conduct trading, custody and clearing through accounts with regulated brokers. Maple has a proven track record of delivering secure and scalable products based on best-in-class smart contract infrastructure, recently receiving a 92% security score from the DeFi Safety full report.
Managing risk on behalf of lenders: Pool’s sole borrowers may only invest in U.S. Treasury securities and reverse repurchase agreements fully collateralized by U.S. Treasury securities. U.S. Treasury bonds are backed by the full trust of the U.S. government and are considered one of the safest forms of debt.
Product operation logic
Liquidity providers (LPs) deposit funds into liquidity pools to fund loans and earn yield. In return, they receive LP tokens representing their share of the pool.
Pool principals are responsible for managing each pool. They perform due diligence and agree terms with borrowers via smart contracts. Pool principals are required to deposit their designated reserve amounts (determined by the protocol's governance and continuously updated) into their pools to cover defaults, aligning their incentives with those of liquidity providers.
Borrowers request platform funding by creating a loan with collateral and receiving funds. Once these terms are agreed upon with the pool principal, the borrower can withdraw the requested funds for a fixed term, fixed interest rate, and fixed collateral level.
Once a borrower is approved on the platform, they can submit a loan request in the pool. Prior to this, the representative conducts financial due diligence on the borrower and agrees on off-chain terms with the borrower. The borrower then submits a new loan request on the chain, which the Pool delegate can view. Once a new loan request is submitted on-chain, it cannot be changed in any way. If an error occurs, a new loan request will need to be created.
Pool representatives are fund and industry professionals with credit experience. Pools can be created, which include a review of the borrower's reputation, management background and fund strategy. The joint representative may also request that the borrower provide a statement of current positions or net asset value for confidential review. The borrower's inquiry will set out the terms and the joint representative may make a counter-offer.
Token economy
The project was issued in 21 years. The current total number of tokens is 10,000,000, and there are 4,417,986 in circulation. The current currency price is 13.8 US dollars, and the peak was $69.7903 (2021-10-30), so this decline is actually not bad, not much. In terms of token distribution, the team took 25+15=39%, which is still relatively high, plus there is still 50% that has not been unlocked.
RWA TVL on the chain has a value of 40 million US dollars. Compared with its market value, its performance is still good, better than RSR.
Finally, we summarize these two projects. The first RSR stablecoin track, the leader is still MKR. Its mechanism can almost be said to be a plagiarism of MKR, but in fact there are not many innovation points, and the TVL is not proportional to the market value. , a bit poor, so overall it’s average. Let’s look at the MPL private fixed income category again. This is the first time in this field that the project has an access mechanism and not everyone can play. However, this category should have a huge market space. I also checked that this project can be considered a private fixed income category. The market value of RWA in the collection category is the highest, because RWA only emerged in the post-DEFI era. It actually has great potential in the future. The ratio of TVL to market value is also good. In fact, if you see why we need to make a horizontal comparison of projects, it is to make a series, from the above two projects, we can actually easily tell which project is better, so friends can sort out the RWA projects mentioned before, and you will have an understanding of the entire RWA project. Understanding the overall situation can better establish an intuitive experience in the field of RWA. Through comparison, we can find out why the leader is the leader, so that we can hold on to it, and get more multiples in the bull market. I hope all my friends will become rich. .
