Reserve Unofficial Update

MEXICO!, USDC is back, Frax, Curve, Plugins and more!

Happy Friday everyone — or should that be Feliz viernes a todos.

Open a bottle of Sol, pop a little carne asada, some refried beans, coriander and onion onto a warm tortilla and join me for a sun-baked walk through this weeks events….

• Memory lane
• Mexico — YES IT’S HAPPENING
• eUSD / Frax
• GitHub / Plugins
• Twitter spaces / youtube
• AOB

Memory lane

We can do our 1 and 2 year step back in time now…

2 years ago we had tipped over 50k downloads of the app — what chance we get to track numbers again now we have the M word.

And 1 year ago, we got a taster of Mexico :

A year :-0

Let’s see if that becomes the case.

Mexico — YES IT’S HAPPENING

Firstly, massive congratulations go out to Gabo, Victoria and the whole team — who could have known they were integrating the App with 123, yes one hundred and twenty three banks!

Here’s the list :

Bancos con los que operamos en México | Ayuda Reserve

Let’s have a dive in and look at a few things banking Mexico. Firstly, the top 15 banks..

this weeks spot the cursor competition is ‘on’

I think Reserve covers something like 13 of those top 15 and obviously many more. Interestingly they cover Deutche Bank, Credit Suisse and Wal-mart. Possible in-roads to their international counterparts?

We all remember (don’t we) that Mexico have a huge proportion of the population unbanked — some information about the numbers and potentially why they don’t bank :

I know confidence in banks is low in Mexico, and that probably won’t change with Reserve (effectively a bank if you hold their money), but the fees and distance should be able to be overcome. If they could save with interest, that might be worth the effort. If, indeed other financial tools become available like loans, then maybe Reserve has enough of a value prop to tip people over.

One of the main reasons to have an account in Mexico is remittances (from abroad) — the numbers are staggering :

Yes, that is 15,519 million USD, which for the billion oriented (who puts a chart in thousands of millions — really?) is $15.5Bn a quarter, which is $62Bn a year. How much does that currently cost?

4.4% on average to send $$$ home — wow. Rpay into the US can’t come quickly enough. I wonder if a partnership between RPay and Moby would allow Moby users to send eUSD to an RPay address….. HINT HINT.

Imagine loading up Moby from bank account and xfer $370 for $0.0025. That’s got to be worth a billion a month.

Next up, savings :

Amounts are average in dollars, so about $350 now. This is slightly skewed as we know a lot are unbanked. Let’s say $75 might be more realistic. 126M people in Mexico, around 40M are unbanked, let’s get to 1M users in Mexico — 0.79% — we could be looking at half a billion in remittances and $75M in TVL.

And just to round off — the Twitter files :

This is just the start, remember. More to come.

eUSD / Frax

Numba go up!

We’ve passed $8M in eUSD

We can see that around 52% overcollateral more or less doubles the base rate of yield (which is about 2.9%) and yield to stakers is 5.7%.

There are now over 1 billion RSR (2% of circulating supply) being staked — which can be verified online

Might as well project forward with Mexico and see what 100M eUSD might look like (with the USDC back in the basket— see later)

So we have 100M eUSD getting 6% base yield and is 40% backed, locking in 4Bn RSR — guessing at the price. So 8% of circ. supply locked and 50M RSR being bought per month in auctions. With the PE of ETH then we can see the potential future value of earnings of RSR.

100M is pretty low in the grand scheme of things — so let’s hope RTokens are a good product market fit for those that want an easy route into branded super-safe stables.

There’s a sUSD-FRAXBP guage which has been voted through — even more ways to degen yield from the Reserve ecosystem.

There’s also a governance vote to put the yield USDC back into the primary basket for eUSD — glad to say this will pass :

Wait for it…

Yay — gainz

So I think next Wednesday the swap will take place by auction and then we’re up to around 11.5% yield to stakers if the staked RSR and mcap stay the same.

Let’s have a look at Tx volume vs Venmo as we’re at the end of Q1. It’s a bit sketchy this month and Tx volume is down daily on RPay but still pretty good

It’ll take a while to make a meaningful dent in Mexico, but it’s on!

GitHub / Plugins

Plugins are coming!

Soon there will be some more plugins available to create more exotic RTokens — I’m really keen to see the lsdETH version and how popular it is. Obviously hyUSD goes without saying — could it get integrated into apps as a yield token?

There’s talk of participating in Coinbases ‘Base’ challenge to provide an inflation proof dollar token, but we’re waiting on the team to ‘mull it over’ before we act.

Twitter Spaces / YouTube

James Glasscock hosted a really interesting twitter space on Wednesday

Discussing stablecoins and the future of DeFi finance. Some really great guests for this — hope they continue down this line and become a soundboard for the RWA / stablecoin position in DeFi.

Here’s a great explainer for RSR and RTokens — ignore the clickbait image

And here’s the first of Reserve Weekly’s bi-weekly Reserve round up where he takes us through the depeg and governance.

AOB

Quite a bit — Reserve getting a bit more exposure in DeFi which is good to see.

March 23, 2023: Then They Fight You 🦖☄️

A mention in Curve’s newsletter — twice!

eUSD is now tracked on DeFiLlama — the de facto resource for defi.

Mstable gone — next up XAI! If we get to 100M then we’re up with Synthetix sUSD.

Finally a good #RWA thread

Phew! I think that’s as much as I have time for — so with that I will bid you adieu — until next time enjoy and mint eUSD!