The DYOR version for unFederal Reserve (eRSDL)
Wanted to share my thoughts on the project unFederal Reserve (eRSDL), the current situation, the experiences I've learned from, and the FA (fundamentals) behind the project.
This is the DYOR you should have done before buying in the first place and what you should have known before panic selling.
*Forgive me for any spelling or grammar errors, correct me if you see anything not factual. Be nice, I’ll block haters, trolls and FUD 🙏
First off, I'm invested and am not selling (I've been adding more)
Heading into the new staking/lending platform going live, I was weary and cautious.
I never like when coins start staking, it causes volatility and whales can turn it into a farming game.
A whale sold millions right before the platform went live and ruined the party for everyone. (Which was bizarre to begin with.. selling before and not after reserving free tokens from staking).
And the second part of this, was 95% of investors didn't read the article the team put out on for instructions and expectations on the staking/lending platform; on "how to", or expectations, or how things work once higher volumes of liquidity is staked.
Everyone just assumed it was 1,000% APY, constant for 2 weeks straight for everyone.
There was $240M staked on the platform in the first 6 hours. And the rewards started high and dropped fast with the unexpected amount of large deposited tokens. Then APY settled at 42%.
So the 95% of investors who didn't DYOR started complaining with the other people who didn't DYOR (great combo) and started FUDing out of ignorance.
They began to panic sell and a domino effect of selling continued.
FA hasn't changed at all.
I don't like farming tokens in general because they help whales get fatter, and create inflation and sell pressure.
This project didn't need to offer it in the first place, but they wanted to drive people to their platform to gain traction there. They wanted to prove feature/function for when they onboard their financial institutions and non-bank lenders in the 2nd half of the year.
But I learned my lesson to control my emotions from just this past Monday when TRU dumped and I sold the bottom, (before DYOR about the situation), just to watch it go back up 4x the same day. (I still think it's a great project FA wise. I just went from 500k+ tokens, to getting left behind and only b getting able to buy back 150k tokens. So I choose to walk away.)
This is one of the strongest FA projects I have found in the past 2 years. (Next to projects like RSR OCEAN DOT KSM LINK).
This feels a lot like the RSR first big sell-off. (I know the situations were not the same. Taking about the dumping only). It dumped 70%. A huge part of CT was FUDing the project during the whole dump and after. Then it proceeded to pull a 13x over the following 6 months.
*See screenshot attached
eRSDL will recover and then proceed to hit over $5B in market cap this cycle imo
I already have friends and strangers who missed the initial run, hitting up my DMs asking about getting in now. $0.60-$0.80 is a great entry.
*eRSDL screenshot for reference & future reference when we recover and hit new ATHs
So to catch everyone up on the DYOR part that obviously many didn't do the first time around.. here's a brief overview.
unFederalReserve is a banking Saas (SaaS = software as a service) company built on blockchain technology. Their banking products are designed for smaller U.S. Treasury chartered banks and non-bank lenders in need of greater liquidity without sacrificing security or compliance.
And while individual investors can use the lending platform, for lending to earn interest and borrow against collateralized assets, etc; this company's aim is at B2B & financial institutions.
Going after smaller US treasury chartered banks and non-bank lenders in the traditional finance sector.
United States Treasury Chartered Banks: A chartered bank is a financial institution engaged in the business of providing monetary transactions, such as safeguarding deposits and making loans. Most chartered banks have received their government's permission to operate in the financial services industry.
Non-bank lenders: Examples of non-bank financial institutions include: insurance firms, venture capitalists, currency exchanges, some microloan organizations. These non-bank financial institutions provide services that are not necessarily suited to banks, serve as competition to banks, and specialize in sectors such as lending.
And just to share how big the non-bank lender sector is; non-bank lending institutions are estimated to hold around $1 trillion of loan commitments, up from $300 billion in 2010, according to the Alternative Credit Council. Non-bank lending is now one-third of the size of bank lending to middle-market companies in the United States.
There are several major benefits associated with using a non-bank lender. The fact that they borrow their funds at or close to wholesale prices means they have a big margin to work with and can often provide lower interest rates than the banks.
unFederal Reserve aims to bring all of the features needed for these institutions to transition to DeFi; i.e. safe, legally compliant liquidity, with near-instant borrowing and lending transaction settlements, while keeping the security and flexibility they need to continue operations and provide guarantees to their customers.
The combination of these features along with the confidence they have with the team has already brought on interest from these institutions, which is projected to bring over $40 billion dollars to the platform by the end of the year alone. That's just from a handful of initial institutions.
The key difference is that will aid to the success of this company versus other DeFi and lending platforms:
- Public team
- Interest in commitment from financial institutions which will bring tens of billions of dollars to the platform
- Fully regulated and licensed (currently in process)
unFederalReserve has selected premium elements of the crypto ecosystem and wrapped it in a best-in-class regulatory framework that delivers its middle-market clients a B2B lending, cash reporting, and overnight lending/borrowing utility tool. We offer the security of immutable records, near instantaneous settlement, and encryption well beyond what the largest global banks currently use.
Middle-market bank and non-bank lenders can feel confident in both lending to vetted third-parties directly and placing excess capital into the marketplace.
Reserve Lending® Alpha testing and product launch, with single-side staking and Chainlink® price oracle integration
Voting on Tier 1 exchange listing and key relationships
Develop Treasurer’s Toolkit (KYC-Chain integration, ALDash and members only USD Stablecoin maker/taker protocols)
MVP with Partner non-bank lenders
Voting on CeFi participants’ size limits, if needed
Apply for multi-jurisdictional regulatory licenses to open cross-border opportunities
Launch Lightning product (low rate, unsecured credit) as safe harbor for commercial lending
Fully decentralized platform providing capital to lenders in need, and providing returns for folks with excess capital
Asset class discussion on break out of more discrete lender asset-types to refine pricing
Secure insurance for banking product
CMDash product or integration with Treasury tool provider
Institute sponsor-bank model for expanding user base
They have one of the most stacked roadmaps out of any crypto projects in the space. One that actually brings REAL value and revenue to the platform & they're partnering with REAL financial institutions who need DeFi solutions & they are bringing 10s of BILLIONS of dollars with them = real use case & DeFi/crypto adoption)
Many other crypto projects rely on hype or speculation alone (or memes).
This project stands out for me because of the pure fundamentals and the multi-billion dollar revenue generating platform which already has several financial institutions and non-bank lenders coming on board this year.
It's a project that doesn't need your approval or the fact you might not like their name or cash tag. This will be one of the first and few companies to onboard real traditional finance adoption into DeFi. This is a future Blue Chip company in the making.
And with early mover advantage, especially in a space, your network of institutions who use this platform will lay the foundation for unFederal Reserve's long term success, despite Bull and Bear markets. Middle Market financial institutions don't just do lending and borrowing, in crypto's little bubble of a 2-year bull run, they operate day after day rain or shine and any market conditions. And with the amount of money that will be flowing into their platform over the next several years and the revenue that they will generate, this company will continue to grow and be worth over a $20B market cap over the next few years.
This is a hindsight market, full of coulda woulda shoulda's. We'll look back and it will have seemed all too obvious.
This correction sucked and I was affected by it, I'm amongst the top holders and have been adding over $1 and continuing to add on this correction under $0.80.
Best of luck whatever you choose to do. But before you make rash, misinformed or uninformed decisions, take accountability and DYOR so so have no regrets later.
Thanks for reading 🙏