MetaReserve has introduced the next iteration of DeFi with its Decentralized Reserve Currency Protocol (DRCP), ensuring that issued tokens or coins are backed by valuable assets, bringing in stability never seen before in the sector.
The highly disruptive move ushers in a new era in DeFi ecosystems and is backed by the Lion Group Holding Limited, a NASDAQ-listed mainstream firm.
DRCP, the Crypto Treasury
Taking a leaf out of how countries manage the value of their issued currency, MetaReserve has built a treasury that manages a reserve of different coins and tokens. Any digital assets issued by the protocol are therefore backed by the reserve. This fundamentally changes how the issued assets are valued, with the cryptos having a base or floor value that the issued assets cannot dip under.
Having a reserve this way gives users of the protocol assurance that their investment is “backed” by real-world demand and value, giving them a hedge against any market downturn.
But that is the only aspect of DRCP that matches with fiat treasuries. Unlike these government-controlled and centralized reserves, the DRCP is not controlled by the elite, but the community itself. The Decentralized Autonomous Organization (DAO) function gives every stakeholder a voice in its operations, right down to putting up proposals or voting on ones made by other users.
Hedged by Reserve, Profits by Staking
A major boost of the DeFi sector has been different protocols offering extremely high incentives to asset holders through offering rewards for staking their tokens and coins in liquidity pools. This offers the protocols to thrive since asset swapping is always available and at the same time the fee is distributed to liquidity providers, creating a passive income source for the users.
MetaReserve moves slightly away from this concept and enriches the experiences of its users by diverting the fee collected into the DRCP. At first glance, it may seem that users will not be earning by this step, but as the protocol’s reserve swells, so does the asset floor value of the liquidity providers, offering them profitability in the long run.
MetaReserve’s DRCP also offers Bonds to users, who can claim these and swap their own assets for native tokens at a discounted rate, offering more value for money.
Many DeFi protocols have also played on the emotions of people as a marketing tactic by preferring to remain anonymous. Decentralization is synonymous with incognito players and challenging regulations. While this has become the norm and practice, it also brings in a host of problems that plague the industry.
Through this developers take the stress of responsibility off of their shoulders and cleverly shift it to the users by establishing a DAO. There is no accountability and what has resulted in a string of scams, frauds, and rug pulls, where the protocol developers scamp away with the investment, leaving users with worthless tokens in their hands.
Not MetaReserve. The protocol is created by a well-reputed and established team of Raiona Digital Assets KFT which includes specialists in their fields. MetaReserve has also partnered with Lion Group Holding Limited, a NASDAQ-listed investment holding company that offers asset management, brokerage, and trading services.
A well-established currency reserve, a reputed team with a respectable work history along with collaboration with mainstream firms puts MetaReserve at the cusp of bringing together different DeFi projects, decentralized games, NFT platforms, and much more in a new era of safe and secure financial growth for all. The DAO voters decide what they want and the decentralization means anyone can be a part of the fast-growing platform, not just the elite.