/biz/ - Business & Finance

>>13812633
The key benefit to holding RSR is that it enables participants to profit through arbitrage opportunities whenever the value of RSV is trading above $1.00 on exchanges. Arbitrage is defined as the simultaneous buying and selling of an asset in different markets in order to take advantage of price discrepancies. The same principle applies to decentralized ecosystems and has been driving much of the trading volume in stablecoin markets.

From a crypto-arbitrageur’s perspective, Prime participants could be in an advantageous position, as they will be able to acquire RSR at the offering price. Should the price of RSR increase prior to the launch of the Reserve Protocol, the entry fee for participating in arbitrage opportunities would be less than if they acquired the RSR on the open market post-launch.

Here is a brief overview of how RSR arbitrage trading works: When RSV is trading above $1.00 on exchanges, any excess RSV tokens in this pool can be purchased from the Reserve smart contract by RSR holders exclusively for $1.00 worth of RSR. Once the purchase is made, RSR tokens are burned.

For example, say RSV was trading at $1.02. In this scenario, participants could buy $1.00 worth of RSR on an exchange. If there is excess RSV in the Reserve vault, RSR holders could then use the $1.00 worth of RSR to purchase the stablecoin through Reserve’s smart contract. Once in possession of RSV, these token holders could go back to an exchange and sell the RSV at market price, making a profit of two cents per token.

It follows that Prime participants, who acquire the RSR token at the offering price, will be able to maximize the value-capture of these arbitrage opportunities, assuming the price of RSR increases. However, should the price of RSR decrease between the Prime and launch of the protocol, token holders will be in a worse position than if they bought the RSR on the open market post-launch.

>>13799341
>That doesn't mean that it's going to be listed on Coinbase in a few weeks
^this
>>13799251
>Sad to see it's already being chilled on /biz/
if you think the project is legit you should buy for the long term and take short term profits on the way up
https://youtu.be/jydF88bwXco
it's a gamble but the idea is a perfect use case for crypto and blockchain
legitimate investors are behind it
low market cap
just listed on Huobi
60 satoshis at the moment
picked up 400,000 RSR myself, let's see what happens

>>13796964

>>13793931
use my ref code fren:

https://www.huobi.co/en-us/topic/invited/?invite_code=vmci4

>>13787162