Project Spotlight: ReSource Protocol (SOURCE)-Turn Untapped Resources into Liquidity
Visit Ubeswap to checkout the new SOURCE-mcUSD pool going live on Thursday 11/25! If you hold SOURCE on Binance, you need to bridge it back using Anyswap (more details on bridging to Celo here). Note the ‘Project Spotlight’ is an Ubeswap community initiative and the ReSource Protocol team is primarily responsible for the information contained in this article. The information in this post is for educational purposes only and should not be taken as financial advice.
ReSource Protocol Project Introduction
The ReSource Protocol provides a comprehensive toolbox for the creation of distributed mutual credit systems that grant participants access to 0% interest credit, further collaborative commerce, and give rise to a new class of stablecoins.
Instead of “renting” capital from a bank or lender, network-participants form a multi-sided lending system in which businesses extend credit to each other. However, they don’t do so with fiat, or even crypto assets. Instead, the ReSource protocol allows participants to monetize what businesses already have: unused inventory, free labor time, and all resources comprising their enterprise. Participants lend these un-utilized resources to peers that need them, and in return — receive from the network what they need themselves to expand their own business.
This multilateral exchange network utilizes an endogenously created money supply as a medium of exchange, which comes into existence as a result of transactions among participants. This endogenously created money is a new form of stablecoin which achieves autonomous stability. This means that ReSource stablecoins are not artificially pegged to fiat or other assets, but derive their stable value from the goods and services traded with them.
What’s the goal of this project?
While many projects pride themself in their efforts to “Decentralize Finance”, the ReSource Protocol does not only disarm intermediaries and custodians, but decentralizes the logic of credit itself, effectively removing the creditor from the equation. This allows participants to launch an “Economy-in-a-Box”, without being reliant on external capital providers such as banks, governments, or even investors.
Why did you decide to build on Celo?
Celo is the perfect fit for ReSource — certainly in terms of features and cost-efficiency, but more importantly: in terms of values and long-term goals. ReSource is not only a credit network, but also an international payment network, serving retail users world-wide which cannot and should not be exposed to fluctuating gas prices. Moreover, the ReSource protocol, its underwriting network and negative-balance enabled native stablecoin, are relatively code-intensive and as such dependent on the cost-efficiency Celo provides. But again, this is not only a question of financial costs: the carbon-footprint created by ReSource, would it have been developed on a competing PoW chain, would have been unacceptable — as any avoidable footprint is. Celo has also invested considerable efforts in making its network accessible to mobile-based users in emerging markets, which suits us from a bizdev perspective as well as from the value perspective driving the ReSource project.
How is the protocol designed?
The ReSource protocol comprises a series of underwriting algorithms, developed in cooperation with our partners at Teller; a risk-management protocol, which relies on a distributed network of underwriters that assess, price, and provide guarantees to mitigate risk; and a novel token standard (CIP-36) which can process negative balances.
What inspired your team to work on this project?
Mutual credit is a centuries old idea that has already lifted millions of people out of poverty, and has enabled entire communities to circumvent banks, financial monopolies and failed governments. However, it’s not without its problems. Mutual credit networks tend to be centralized, limited in scope, and struggle to manage risk adequately.
The time is ripe to develop mutual credit as a universally accessible protocol layer, which will provide liquidity, a medium of exchange, and a store of value, native to the internet itself, independent of state-run or corporate entities. Successful mutual credit networks can not only pose disruptive competition to existing financial institutions, but may also provide a decentralized alternative to digital cash, which is stable, but independent from fiat currencies (not artificially pegged)
How can the community help or join?
Join our Discord, participate in the conversation, connect us to reputable business organizations that can launch mutual credit networks in their communities.
Roadmap
Q4 2021
- Marketplace transactions live on blockchain
- Launch alpha Source dApp for underwriting ReSource Network credit lines
- Enable support for a business’ employees, extending transaction capacity and enabling businesses to provide employee benefits within the platform.
Q1 2022
- Competitive bidding on credit underwriting in Source dApp
- Streamline new business credit approval / assignment & employee onboarding
Q2 2022
- Launch native mobile app for ReSource Wallet & Marketplace
- Automate credit application process
- “Pay with ReSource” API
Q3 2022
- Adapt to open-source platform for white label self-start networks
Q4 2022
- Launch partnership network for next Protocol use-case
Team
Introducing $SOURCE — the governance, utility, and payment token for the ReSource Protocol
SOURCE is the project’s governance, utility, and payment token, and is used as follows:
- Underwriters stake and lock SOURCE when approving credit lines.
- Members (Merchants within the network), use SOURCE to pay transaction fees.
- Underwriters earn SOURCE as staking rewards.
- Staked SOURCE grants stakers voting rights on protocol and network decisions.
As the ReSource network expands and more credit lines are being issued, more SOURCE will be locked within staking contracts. Likewise, the higher the transaction throughput on the network, the more SOURCE will be consumed through fee payments. Read more about the release details here.
Token Allocation
- Token Symbol: SOURCE
- Total Supply: 100,000,000 SOURCE
- Contract Address (Celo): 0x74c0C58B99b68cF16A717279AC2d056A34ba2bFe
Liquidity Mining
UbeSwap SOURCE/mcUSD
LP incentives: 50,000 SOURCE / Month for 12 months + 4000 CELO / Month for 3 months. In addition the Ubeswap community could also contribute UBE rewards to the pool, as ReSource network is a long-standing contributor to the Celo ecosystem and former participant in Celo Camp.
ReSource Contact Info
Protocol Website | Network Website | Discord | Telegram | Twitter