๐๐ ๐๐ผ๐๐ฟ ๐ฐ๐ผ๐๐ป๐๐ฟ๐ ๐๐๐ณ๐ณ๐ฒ๐ฟ๐ถ๐ป๐ด ๐ณ๐ฟ๐ผ๐บ ๐ถ๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป?
True wealth means making money while you sleep.
Here's a new way to store money that won't get inflated:
(Even if you have little funds)
True wealth means making money while you sleep.
Here's a new way to store money that won't get inflated:
(Even if you have little funds)
๐ง๐ต๐ฒ ๐๐ด๐ฒ ๐ผ๐ณ ๐ฆ๐๐ฒ๐ฒ๐น.
There was rapid industrial growth in the late 19th century.
Booming industries like steel, railroads, and manufacturing resulted in stock market volatility.
However, you couldn't measure how the overall market was doing.
So...
There was rapid industrial growth in the late 19th century.
Booming industries like steel, railroads, and manufacturing resulted in stock market volatility.
However, you couldn't measure how the overall market was doing.
So...
Charles Dow, along with his business partner Edward Jones, created the Dow Jones Industrial Average (DJIA).
The process involved:
ยท Selecting 12 leading American companies.
ยท Adding up their stock prices.
ยท And dividing by 12 to calculate the average.
This created an...
The process involved:
ยท Selecting 12 leading American companies.
ยท Adding up their stock prices.
ยท And dividing by 12 to calculate the average.
This created an...
...index that tracks the overall health of the market โ just like DefiLlama.
Demand grew and the S&P 500 was introduced to track a broader array of industries.
Simple, yes. But easy, no.
Here's why...
Demand grew and the S&P 500 was introduced to track a broader array of industries.
Simple, yes. But easy, no.
Here's why...
๐๐ฒ๐'๐ ๐ง๐ถ๐บ๐ฒ ๐ง๐ฟ๐ฎ๐๐ฒ๐น
It's the beginning of 1982, and only a few people see indices as a business.
There are two U.S. indices โS&P 500 and Dow Jones โplus one index fund.
The economy is in the second of two back-to-back recessions...
And nobody wants to buy stocks.
It's the beginning of 1982, and only a few people see indices as a business.
There are two U.S. indices โS&P 500 and Dow Jones โplus one index fund.
The economy is in the second of two back-to-back recessions...
And nobody wants to buy stocks.
All of a sudden, things turn dark.
You think it's a solar eclipse, but it's ๐๐น๐ฎ๐ฐ๐ธ ๐ ๐ผ๐ป๐ฑ๐ฎ๐.
What happened?
October 19, 1987, the market crashes.
ยท S&P 500 loses 20%.
ยท The Dow loses 22%.
A one-day drop that's greater than the crash of 1929 which took two days.
How?
You think it's a solar eclipse, but it's ๐๐น๐ฎ๐ฐ๐ธ ๐ ๐ผ๐ป๐ฑ๐ฎ๐.
What happened?
October 19, 1987, the market crashes.
ยท S&P 500 loses 20%.
ยท The Dow loses 22%.
A one-day drop that's greater than the crash of 1929 which took two days.
How?
Months before, there were concerns about rising interest rates and trade imbalances.
European markets faced challenges, alongside signs of weakness in the U.S. market.
Due to anxiety over the weekend, the Monday market opens up with a sharp decline.
Then it gets worse...
European markets faced challenges, alongside signs of weakness in the U.S. market.
Due to anxiety over the weekend, the Monday market opens up with a sharp decline.
Then it gets worse...
Investors, afraid of losing, start selling in large volumes.
Computerized program trading, designed to automatically execute orders based on certain conditions, sell off even faster.
You sell, I sell, we all sell...
...๐ต๐ฐ ๐ข๐ท๐ฐ๐ช๐ฅ ๐ฃ๐ฆ๐ช๐ฏ๐จ ๐ข ๐ด๐ค๐ข๐ฑ๐ฆ๐จ๐ฐ๐ข๐ต ๐.
Computerized program trading, designed to automatically execute orders based on certain conditions, sell off even faster.
You sell, I sell, we all sell...
...๐ต๐ฐ ๐ข๐ท๐ฐ๐ช๐ฅ ๐ฃ๐ฆ๐ช๐ฏ๐จ ๐ข ๐ด๐ค๐ข๐ฑ๐ฆ๐จ๐ฐ๐ข๐ต ๐.
We're in the 1980s, and the market becomes stable with the S&P 500 as the #1 benchmark & scorekeeper.
Investment banks hire analysts to track indices, and companies start asking...
"How can we join the S&P 500?"
In a few years, things start flourishing and it's...
Investment banks hire analysts to track indices, and companies start asking...
"How can we join the S&P 500?"
In a few years, things start flourishing and it's...
"Happy New Year"
Mid-year comes and no one is happy.
Recession hit from July to October 1990 as the market falls by 23%.
And the new products team of The American Stock Exchange start looking for ways to increase trading volume.
After digging into the SEC's report on the...
Mid-year comes and no one is happy.
Recession hit from July to October 1990 as the market falls by 23%.
And the new products team of The American Stock Exchange start looking for ways to increase trading volume.
After digging into the SEC's report on the...
...1987 crash, they find a secret.
Buried in the report is a comment that "a mechanism to execute a single trade for a basket of assets could've helped".
From that thought came the "Big SPDR"โ the first U.S. ETF launched in 1993 that tracked the S&P 500.
SPDR stands for...
Buried in the report is a comment that "a mechanism to execute a single trade for a basket of assets could've helped".
From that thought came the "Big SPDR"โ the first U.S. ETF launched in 1993 that tracked the S&P 500.
SPDR stands for...
...Standard and Poor's Depository Receipt.
"Why add 'poor' to the name? ๐"
ยท Henry Varnum Poor founded Poor's Publishing Company.
ยท Luther Lee Blake founded the Standard Statistics Bureau.
When they merged in 1941, it became Standard & Poor's Corporation.
Now...
"Why add 'poor' to the name? ๐"
ยท Henry Varnum Poor founded Poor's Publishing Company.
ยท Luther Lee Blake founded the Standard Statistics Bureau.
When they merged in 1941, it became Standard & Poor's Corporation.
Now...
SPDR (pronounced "spider") is an ETF that replicates the returns of an S&P index.
What did ETFs create?
In one word, magic.
But people didn't know, until the 1995 tech bull market which put indices on the radar.
Tech companies were pushing the market to new heights.
Until...
What did ETFs create?
In one word, magic.
But people didn't know, until the 1995 tech bull market which put indices on the radar.
Tech companies were pushing the market to new heights.
Until...
...the bull run ended on March 24, 2000.
Fast-forward to 2023, ETFs and Mutual funds, alongside other index products, have grown into a 108.6 trillion dollar industry.
Now...
๐ช๐ต๐ ๐ฑ๐ถ๐ฑ ๐ถ๐ป๐ฑ๐ฒ๐ ๐ถ๐ป๐๐ฒ๐๐๐ถ๐ป๐ด ๐ฏ๐ฒ๐ฐ๐ผ๐บ๐ฒ ๐ฝ๐ผ๐ฝ๐๐น๐ฎ๐ฟ? ๐
Fast-forward to 2023, ETFs and Mutual funds, alongside other index products, have grown into a 108.6 trillion dollar industry.
Now...
๐ช๐ต๐ ๐ฑ๐ถ๐ฑ ๐ถ๐ป๐ฑ๐ฒ๐ ๐ถ๐ป๐๐ฒ๐๐๐ถ๐ป๐ด ๐ฏ๐ฒ๐ฐ๐ผ๐บ๐ฒ ๐ฝ๐ผ๐ฝ๐๐น๐ฎ๐ฟ? ๐
1. ๐๐ผ๐ ๐ฐ๐ผ๐๐๐.
You don't have to spend time to:
ยท Research.
ยท Analyse.
ยท Pick bonds.
ยท Or Write reports.
ETF fees go as low as 0.2 โ 0.4%.
2. ๐๐ผ๐ป๐๐ถ๐๐๐ฒ๐ป๐ ๐ฝ๐ฒ๐ฟ๐ณ๐ผ๐ฟ๐บ๐ฎ๐ป๐ฐ๐ฒ.
Passively managed funds outperform actively managed ones over time.
Thirdly...
You don't have to spend time to:
ยท Research.
ยท Analyse.
ยท Pick bonds.
ยท Or Write reports.
ETF fees go as low as 0.2 โ 0.4%.
2. ๐๐ผ๐ป๐๐ถ๐๐๐ฒ๐ป๐ ๐ฝ๐ฒ๐ฟ๐ณ๐ผ๐ฟ๐บ๐ฎ๐ป๐ฐ๐ฒ.
Passively managed funds outperform actively managed ones over time.
Thirdly...
3. ๐ง๐ฟ๐ฎ๐ป๐๐ฝ๐ฎ๐ฟ๐ฒ๐ป๐ฐ๐.
4. ๐๐ถ๐๐ฒ๐ฟ๐๐ถ๐ณ๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป.
5. ๐๐ถ๐ด๐ต ๐น๐ถ๐พ๐๐ถ๐ฑ๐ถ๐๐.
6. ๐ฆ๐ถ๐บ๐ฝ๐น๐ถ๐ฐ๐ถ๐๐.
7. ๐๐ฐ๐ฐ๐ฒ๐๐.
Now...
If Bitcoin and ETH act as benchmarks โ just like the S&P 500...
Why have crypto index products not taken off?
4. ๐๐ถ๐๐ฒ๐ฟ๐๐ถ๐ณ๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป.
5. ๐๐ถ๐ด๐ต ๐น๐ถ๐พ๐๐ถ๐ฑ๐ถ๐๐.
6. ๐ฆ๐ถ๐บ๐ฝ๐น๐ถ๐ฐ๐ถ๐๐.
7. ๐๐ฐ๐ฐ๐ฒ๐๐.
Now...
If Bitcoin and ETH act as benchmarks โ just like the S&P 500...
Why have crypto index products not taken off?
1. High fees.
2. Fear of hacks.
3. Limited liquidity.
4. Limited education.
5. Short-term investor mindset.
6. Fear of manipulation of small-cap assets.
7. Limited Integration with Traditional Finance.
But that's not all...
2. Fear of hacks.
3. Limited liquidity.
4. Limited education.
5. Short-term investor mindset.
6. Fear of manipulation of small-cap assets.
7. Limited Integration with Traditional Finance.
But that's not all...
๐ง๐ต๐ฒ ๐๐๐ถ๐ป๐ด ๐ผ๐ณ ๐ถ๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป
The law of inflation says "Everything that goes up must not come down".
For example:
Since 2002, Venezuela has never had a year go by without inflation. 2018 was a shocking 65,374% ๐ณ.
The law of inflation says "Everything that goes up must not come down".
For example:
Since 2002, Venezuela has never had a year go by without inflation. 2018 was a shocking 65,374% ๐ณ.
๐ช๐ต๐ฎ๐ ๐ฐ๐ฎ๐๐๐ฒ๐ ๐ถ๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป?
During the late 1800s, paper money was backed by gold โ which kept countries honest.
But...
After the Great Depression, huge debts made them rethink the gold standard, and by the 1970s, it was no longer tied to currency.
So...
During the late 1800s, paper money was backed by gold โ which kept countries honest.
But...
After the Great Depression, huge debts made them rethink the gold standard, and by the 1970s, it was no longer tied to currency.
So...
They started printing money at will.
"Mr. President, our country is in debt and taxes aren't enough"
"Yikes ๐ฌ, just print some $$ to cover up"
โ Repeat.
Excess money = High demand = Shortage in supply = Increased prices = Worthless currency.
It's not nice to fool nature.
"Mr. President, our country is in debt and taxes aren't enough"
"Yikes ๐ฌ, just print some $$ to cover up"
โ Repeat.
Excess money = High demand = Shortage in supply = Increased prices = Worthless currency.
It's not nice to fool nature.
Fiat currencies are devaluing all the time.
I.e. If you do your hard work and get your paycheck but don't spend it right away, its purchasing power reduces.
But...
What if it doesn't work that way?
What if $1,000 today equals $1,000 in 5, 10, or 50 years?
I.e. If you do your hard work and get your paycheck but don't spend it right away, its purchasing power reduces.
But...
What if it doesn't work that way?
What if $1,000 today equals $1,000 in 5, 10, or 50 years?
๐ง๐ต๐ฒ ๐๐ผ๐น๐๐๐ถ๐ผ๐ป.
Have you noticed that wealthy people don't keep their money in currencies?
They use a diversified basket of assets like:
ยท Gold ๐ช
ยท Bonds ๐ต
ยท Stocks ๐
ยท Or real estate ๐
...and convert a little to fiat for expenses.
Why?
Have you noticed that wealthy people don't keep their money in currencies?
They use a diversified basket of assets like:
ยท Gold ๐ช
ยท Bonds ๐ต
ยท Stocks ๐
ยท Or real estate ๐
...and convert a little to fiat for expenses.
Why?
To beat inflation...
Price appreciation and revenue must be greater than inflation.
In DeFi, there are different tokenized ways to store wealth that either generate revenue / maintain value.
What if we combined these assets into one token like ETFs? ๐ค
Price appreciation and revenue must be greater than inflation.
In DeFi, there are different tokenized ways to store wealth that either generate revenue / maintain value.
What if we combined these assets into one token like ETFs? ๐ค
๐ฅ๐ฒ๐๐ฒ๐ฟ๐๐ฒ ๐ฃ๐ฟ๐ผ๐๐ผ๐ฐ๐ผ๐น
โBackstoryโ
@ReserveProtocol started in 2018 as a centralized company offering Venezuelans a stablecoin, RSV, to hedge against inflation.
Venezuelans would convert their bolรญvars to RSV since it was pegged to the U.S. dollar.
As expected...
โBackstoryโ
@ReserveProtocol started in 2018 as a centralized company offering Venezuelans a stablecoin, RSV, to hedge against inflation.
Venezuelans would convert their bolรญvars to RSV since it was pegged to the U.S. dollar.
As expected...
Reserve Mobile App (RPay), a stablecoin platform where you can hold and spend RTokens, was a success with:
ยท Over 1 million downloads on Android and iOS.
ยท $300M worth of monthly txns.
ยท And more.
RPay made Venezuelans to start saving again.
Then the worst thing happened...
ยท Over 1 million downloads on Android and iOS.
ยท $300M worth of monthly txns.
ยท And more.
RPay made Venezuelans to start saving again.
Then the worst thing happened...
Operation Choke Point
The government shut down all companies with crypto to banking operations due to bad actors ๐.
So...
RPay was suspended.
But...
How about going decentralized? ๐
The government shut down all companies with crypto to banking operations due to bad actors ๐.
So...
RPay was suspended.
But...
How about going decentralized? ๐
โPresent dayโ
Reserve Protocol allows you or anyone to create synthetic assets called RTokens on Ethereum backed by predefined ERC 20 tokens.
An RToken could be a:
ยท Fiat-pegged.
ยท Yield-bearing.
ยท Highly decentralized token.
ยท Anything you choose.
The plan is to:
Reserve Protocol allows you or anyone to create synthetic assets called RTokens on Ethereum backed by predefined ERC 20 tokens.
An RToken could be a:
ยท Fiat-pegged.
ยท Yield-bearing.
ยท Highly decentralized token.
ยท Anything you choose.
The plan is to:
ยท Take tokenized versions of the same assets wealthy people use to protect wealth.
ยท Pool them together.
ยท And make a currency out of them called RTokens.
This way, you store your money like wealthy people already do.
But, ๐ช๐ต๐ฎ๐ ๐ฒ๐ ๐ฎ๐ฐ๐๐น๐ ๐ฎ๐ฟ๐ฒ ๐ฅ๐ง๐ผ๐ธ๐ฒ๐ป๐?
ยท Pool them together.
ยท And make a currency out of them called RTokens.
This way, you store your money like wealthy people already do.
But, ๐ช๐ต๐ฎ๐ ๐ฒ๐ ๐ฎ๐ฐ๐๐น๐ ๐ฎ๐ฟ๐ฒ ๐ฅ๐ง๐ผ๐ธ๐ฒ๐ป๐?
An RToken is a general name for asset-backed tokens created in Reserve Protocol.
They allow the token creator to decide on things like:
ยท Governance parameters.
ยท Revenue share.
ยท Token ticker.
ยท Etc.
An RToken will take the features of its underlying assets.
Plus...
They allow the token creator to decide on things like:
ยท Governance parameters.
ยท Revenue share.
ยท Token ticker.
ยท Etc.
An RToken will take the features of its underlying assets.
Plus...
You don't need permission to launch an RToken.
The main ideas are that:
โMarket adoption will show the best form of on-chain money.
โMore assets will be tokenized.
โDecentralized governance will evolve.
However, here are 4 ways RTokens will boost crypto index products:
The main ideas are that:
โMarket adoption will show the best form of on-chain money.
โMore assets will be tokenized.
โDecentralized governance will evolve.
However, here are 4 ways RTokens will boost crypto index products:
1. ๐ข๐๐ฒ๐ฟ ๐ฐ๐ผ๐น๐น๐ฎ๐๐ฒ๐ฟ๐ฎ๐น๐ถ๐๐ฎ๐๐ถ๐ผ๐ป
Reserve's team invested $20 million in:
ยท Curve.
ยท Convex.
ยท And Stake DAO.
...to increase liquidity and adoption of RTokens by redirecting LP incentives.
RSR holders are also rewarded to stake โwhich is used as backup liquidity.
Reserve's team invested $20 million in:
ยท Curve.
ยท Convex.
ยท And Stake DAO.
...to increase liquidity and adoption of RTokens by redirecting LP incentives.
RSR holders are also rewarded to stake โwhich is used as backup liquidity.
2. ๐๐ผ๐น๐น๐ฎ๐๐ฒ๐ฟ๐ฎ๐น ๐๐๐ฝ๐ฒ
Accepted collateral types follow the ERC 20 standard
Yield-bearing or stable tokens from platforms like Compound, AAVE, and Pax Gold are examples of ideal RToken collateral.
Thirdly...
Accepted collateral types follow the ERC 20 standard
Yield-bearing or stable tokens from platforms like Compound, AAVE, and Pax Gold are examples of ideal RToken collateral.
Thirdly...
3. ๐๐ฑ๐๐ฐ๐ฎ๐๐ถ๐ผ๐ป
The aim is for normal people to use crypto. To do that, you'd have to teach them the normal way.
Some nice videos & articles provided, make it easy to learn.
Lastly...
The aim is for normal people to use crypto. To do that, you'd have to teach them the normal way.
Some nice videos & articles provided, make it easy to learn.
Lastly...
4. ๐ฆ๐ฒ๐ฐ๐๐ฟ๐ถ๐๐
DeFi suffered from terrible hacks this year.
So...
Reserve has launched a $5 million bug bounty program alongside undergoing audits from top auditors like:
ยท Halborn.
ยท Code4rena.
ยท & Trail of Bits.
DeFi suffered from terrible hacks this year.
So...
Reserve has launched a $5 million bug bounty program alongside undergoing audits from top auditors like:
ยท Halborn.
ยท Code4rena.
ยท & Trail of Bits.
๐ง๐ฎ๐ธ๐ฒ๐ฎ๐๐ฎ๐๐
Remember how ETFs work? Reserve allows you to:
ยท Take tokenized versions of the same assets wealthy people use to protect wealth.
ยท Pool them together.
ยท And make a currency out of them called RTokens (which can change the world).
Remember how ETFs work? Reserve allows you to:
ยท Take tokenized versions of the same assets wealthy people use to protect wealth.
ยท Pool them together.
ยท And make a currency out of them called RTokens (which can change the world).
That's a wrap!
If you enjoyed this thread:
ยท Follow @enijoshua_ for more content.
ยท Join @Reserveprotocol's Discord: discord.com
If you enjoyed this thread:
ยท Follow @enijoshua_ for more content.
ยท Join @Reserveprotocol's Discord: discord.com
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