In an industry dominated by fiat-pegged stablecoins like USDT and USDC, Resolv Protocol introduces a paradigm shift: a stablecoin architecture fully backed by Ethereum (ETH). This model achieves market neutrality, over-collateralization, and independence from traditional financial infrastructure while maintaining price stability.
Resolv isn't just another stablecoin project—it's a protocol designed for the next evolution of decentralized financial stability.
Resolv at a Glance
At its core, Resolv issues USR, a USD-pegged stablecoin with native ETH backing. Unlike stablecoins reliant on centralized custodians or opaque reserves, Resolv maintains its peg through transparent on-chain mechanisms combining spot ETH holdings with a delta-neutral hedging strategy using perpetual futures.
Key Features:
- Direct minting/redeeming of USR using ETH-based collateral.
- ETH-denominated over-collateralization protected by an insurance layer (RLP).
- Hedged-neutral strategy via perpetual futures positions.
- Full redemption at pegged value, ensuring arbitrage-driven stability.
This multi-layered design positions Resolv as robust, decentralized financial infrastructure in an increasingly volatile macroeconomic environment.
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USR: A Stablecoin Redefined
USR is Resolv’s native stablecoin, pegged to the USD but distinctively free from fiat reserves. Instead, it operates on a 100%+ ETH-collateralized model, enhanced by the RLP token as a dynamic insurance mechanism.
Core Mechanics:
- 1:1 Minting/Redeeming: USR is directly exchangeable for ETH-backed collateral.
- Over-Collateralization: Supported by both ETH and RLP as a liquid buffer.
- Non-Yielding Base Asset: USR itself accrues no yield but can be staked as stUSR to access protocol-generated profits.
This dual-layer utility—base stability (USR) and yield staking (stUSR)—creates incentives for both passive holders and active participants.
RLP: Resolv’s Insurance Layer
The Resolv Liquidity Pool (RLP) is more than a safety net; it’s central to the protocol’s risk architecture. While USR ensures the peg, RLP guarantees solvency during market volatility.
RLP Attributes:
- Backed by Excess ETH: RLP’s value derives from surplus collateral beyond USR’s requirements.
- Dynamic Pricing: Mint/redemption prices adjust based on real-time pool valuations.
- Risk Absorption: RLP bears losses (e.g., negative funding rates), shielding USR holders.
- Profit Participation: RLP holders earn a risk premium for their role.
RLP functions like a decentralized reinsurance layer, making USR one of the few stablecoins with built-in on-chain insurance.
👉 Learn about decentralized risk management
Collateral Pool: Market-Neutral Design
Resolv’s delta-neutral collateral strategy sets it apart. Though USR is ETH-backed, the protocol neutralizes ETH price exposure via perpetual futures, achieving zero net directional risk.
Highlights:
- Perpetual Futures Hedging: ETH spot holdings are offset by equivalent short futures.
- On-Chain & Custodied Balances: Most collateral remains staked on-chain; a portion is custodied for margin management.
- Revenue Generation: Profits come from staked ETH and funding rate differentials.
This setup makes Resolv sustainable and yield-generating.
Profit Distribution Model
Every 24 hours, Resolv allocates profits (from staking and arbitrage) as follows:
- Base Rewards: To stUSR and RLP holders.
- Risk Premium: Exclusive to RLP participants.
- Protocol Fees: Fund treasury for governance and ecosystem growth.
Losses (e.g., negative funding) pause distributions and are absorbed by RLP, prioritizing stability and user confidence.
Why Resolv Matters
As DeFi matures, demand grows for transparent, crypto-native stablecoins. Resolv delivers:
- Fiat-Independence: No reliance on banks or off-chain reserves.
- Capital Efficiency: 1:1 collateral (no over-collateralization).
- Arbitrage-Stabilized Peg: Instant redemption corrects price deviations.
- Composable Infrastructure: USR/RLP are programmable DeFi building blocks.
- Sustainable Yield: Real-revenue model (no speculative emissions).
Conclusion
Resolv redefines stablecoins with mathematically sound, decentralized frameworks, leveraging:
- ETH-native assets.
- Delta-neutral mechanisms.
- Layered risk management.
It sets a new benchmark for transparency and resilience, potentially becoming a monetary pillar for decentralized economies.
FAQs
Q: What is Resolv?
A: A decentralized protocol issuing USR, an ETH-backed, USD-pegged stablecoin using delta-neutral strategies and RLP insurance.
Q: How does USR differ from USDC/USDT?
A: USR is 100% ETH-collateralized, avoiding traditional banking dependencies while maintaining a USD peg.
Q: What backs USR’s value?
A: ETH collateral + perpetual futures hedging. RLP provides additional safety.
Q: Could USR lose its peg?
A: Arbitrage via 1:1 redemption keeps deviations minimal.
Q: What is RLP’s role?
A: RLP absorbs protocol risks (e.g., funding losses) and earns a risk premium.
Q: Is USR yield-bearing?
A: Only when staked as stUSR.
Q: Who should use Resolv?
A: DeFi users, yield farmers, and protocols seeking decentralized stability without fiat exposure.