Nov 12, 2021
Reserve Adoption Update
Podcasts, CoinTelegraph, tay.tg, Proto1-init, special staking edition AND MORE
Friday again! Bonus.
- App / Socials
- Interviews / videos
- Adoption
- Mainnet V1
- AOB
- Staking — examples
A bumper update this week with quite a bit going on…
App / Socials
While a lot of recent reviews are very favourable, one stars are creeping in -so I took a look.
Now, lets have a look at these 1* reviews
So 1 missing transaction, 1 account suspended and 1 fees to much. Each has been responded to by the support team, so that’s good. Seems the second was resolved and the rates — well not a lot can be done about that except maybe more liquidity providers. Rhetorical question — if 1 million Venezuelans were using the App, how much liquidity would be needed?
All happy users — always good to see. Plus now there are no invites, users are getting small businesses to sign up right away — I think this might be behind the exponential growth :
For those who haven’t come into contact with Herbalife — it’s an MLM company with a somewhat high pressure selling environment.
Interviews / Videos
Nevin in voxpop on adoption of merchants. Key takeaway — organic.
Blockworks podcast — actually that video is down atm here’s the podcast
Key takeaways — how hyperinflation occurs, app demo, savings account in the App and anyone can create a stablecoin. Jason gets it.
CoinTelegraph! Seen as ‘a biggun’, nearly 14M hits a month. Key takeaway — It’s like Zelle but you don’t need to fly to the US to open an account.
AND THERE’S MORE!
Today!
Mainnet V1
Wen minnet? no, WEN MINNET! Ok, it’s day one minnet, you wake up, brush your teeth, drink coffee. What? Oh staking via the dApp. Anyway, I digress.
Super excited to see mention of Proto-1, which means Proto-0 is either complete or near it. Progress looking good so far.
What have they been up to — a non-exhaustive list :
So not much then ;-)
AOB
Holareserve are priming people for the option of a savings account..
Still more interplay between Holareserve and Cinex — this has to be happening, right?
Reserve is hiring again — more support operators. Matt Gertler is also hiring, so adoption is going great and it’s just a case of more people in, so looks manageable.
Interesting survey taken by Holareserve — more people want to see the new Spiderman film than want iOS. WEN IOS!
Remember Rangers Day for invites? Well now #MerchantsThursday — $10 giveaways for Merchants applying to Reserve. 8000+ now — WEN 10,000! Maybe even next month.
Is that good? Well I had a look round the back of Google’s sofa and found this :
That’s soooo 2018 baby. This was the initial list of stores accepting Google Pay. Yes, they’re massive, but Google is massive. BUT a) it’s not that big a list and b) it only took them 2 years to make that a million stores. Imagine….
Lemon launches it’s LemonCard — crypto / visa tie up. Holareserve reply. Dots? Joined?
Q3 Update is here
Key takeaway —
Bakufu Ninja, the Merchant Business Sales Manager is going to El Salvador to schill Reserve!
And finally for AOB, heard of tay.tg (I honestly don’t even know if I’m supposed to remove part of that)? Well she has 16M TikTok followers — is that a lot? I think so — this chef bloke who’s never off the telly (sorry Gordon) has 29M
So anyway — she has #RSR in her Bio. Influencers as well? Well I never. It’s probably not even $RSR but hey, I’ll take it. I wonder what her take on what should be considered a default if a collateral should be?
Staking — examples
I thought I’d do a couple of examples of staking to maybe show what it is that drives the new model, instead of depreciation (burn).
So first I thought — app users, saving in the new RToken. That mints RTokens and thus kicks off the ability to stake on them. Then, since Reserve has mentioned exchanges and so on for the new RToken, use of it will be a lot more than the app. I also think it will have a utility which some people who may shy away from current stablecoins, namely transparently backed 1:1 with added insurance (stakers). This could open up a new generation of stablecoin user.
Ok so grand ideas out of the way — what are our variables?
- Yield overall from the underlying assets through compound /aave— lets say 5%. Do we know that? No. But we do know it will fluctuate with those rates and the excess will buy RSR for you.
- Amount RSR staked. This is the total RSR in the pool wanting some of that reward.
- The rate given to stakers — unfortunately not all the 5% goes to RSR stakers. The amount is a variable in creating the stablecoin. Let’s go with 60% to stakers. 3% by my maths.
- RToken market cap. Each token in circulation will attract the yield.
- The price you bought RSR at in order to find out YOUR percentage reward
- On top of that you’ve got buyback but we’ll go simple for now.
So, really what we want in a perfect world is a billion tokens and 1 staker, right? Heh.
I should say here I have just guessed at these variables — there’s no way of knowing but you can at least play with the numbers and see how much that affects the final outcome.
Here we’ve got 5Bn RSR staked and only 20M Rtokens. Each RSR would receive $0.0001203 reward. On 100k RSR that would be $144.37 per year (I have not compounded it, but feel free to). Is that any good? Well if your initial price of RSR was 4c, then on an initial investment of $4000 you’ve earned $144.37 which is 3.61%. Maybe not going to set your hair on fire. However the PE ratio shows the value of RSR as having gone up. Lets tweak the Mcap a bit more and see what’s next…
I’ll just do these side by side.
Again, I have not built in buy-back yet, only over-estimated amount in circulation. I might look at that next week.
As you can see, the more RTokens in circulation, the more it offsets both staked RSR (which I am increasing) and underlying value. Assuming you bought at 4c, then after a few months you could be getting between 6–9% NET on that. Remember there is no fee and no inflation here, so that is the whole amount. As I said last week your ADA staked is subject to inflation :
As I said, I have guessed at the variables, but now in true Blue Peter fashion you can make your own staking model at home — all you need is a spreadsheet and 13 formulae. All the kids want one for Xmas!
Any questions — please send on the back of a postcard to :
Thanks again for reading — enjoyed this one.
