Bitboy Crypto has compared two of the hottest DeFi projects in its inaugural episode of Blockchain Battles: Reserve Rights and Ampleforth. Reserve aims to be a flexible pool of stablecoins that is designed to reduce risk through diversification while Ampleforth seeks to be a sound form of money built on adaptive economics. Reserve’s RSV is a stable cryptocurrency that is economically and legally robust at any scale, while Ampleforth’s token dynamics make it a promising form of collateral for DeFi. While Reserve is a stablecoin, Ampleforth is not entirely a stablecoin due to its ability to expand and contract its supply in response to demand.
Reserve Rights: A Look Into The Flexible Pool of Stable Coins
Can you ignore what’s happening in the world of cryptocurrencies today? With new projects popping into the radar every day, it’s getting harder to ignore the gains these projects are making. Time is of the essence, especially when Bitcoin finally pops off and climbs above 10k. In this article, we are going to pit two of the hottest d5 projects against each other – Reserve and Ampleforth. We will find out which one is the better opportunity for you to make that Skrilla.
Reserve is a flexible pool of stable coins designed to reduce risk through diversification and decentralized governance. To everyday users, Reserve is just an app for buying, holding and spending digital U.S dollars. The Reserve project is marketed as the digital currency for countries with high inflation like Venezuela or Zimbabwe. The Reserve project uses two cryptocurrencies specifically Reserve Rights (RSR) and Reserve (RSV). RSV is the stable cryptocurrency that’s economically and legally robust at any scale, decentralized 100%, asset-backed, and funded by top Silicon Valley investors. RSR is the fluctuating protocol token that plays a role in stabilizing RSV and confers the cryptographic right to purchase excess Reserve tokens as the network grows. Although the Reserve protocol actually interacts with three kinds of tokens, the RSV and RSR, and third collateral tokens are other assets that are held by the Reserve smart contracts to back the value of the Reserve token. The Reserve team notes that the project will move through three different phases that are increasingly decentralized.
Ampleforth seeks to redefine how money works. It’s designed to be a sound form of money built on adaptive economics. Ampleforth uses adaptive economics and does not operate based on a basket of currencies in its protocol. Ampleforth has the ability to fairly and automatically adjust its supply in response to demand without any need for a bank. Ampleforth is nicknamed the elastic cryptocurrency due to its ability to expand and contract its supply in response to the demand it is seeing. Ampliforth builds in a financial incentive for users to help the network reach equilibrium. The network depends on profit-seeking traders to restore equilibrium on the demand side. Once the change in supply goes through, as an asset whose price is determined by the free market arbitragers can sell their newly credited ambles or fulfilling demand creating market pressure.
While both Reserve Rights and Ampleforth have unique features to offer, the blockchain battle winner in this article is Ampleforth. Ampleforth is a promising form of collateral for d5, especially with its counter-cyclical economic policy, making it stand out from other d5 protocols. Its protocol’s implementation of counter-cyclical economic policy sets it apart from other d5 protocols, especially Reserve. Ampleforth’s counter-cyclical nature is desirable from an investment perspective as it gives Ampleforth a low correlation to the likes of Bitcoin and Ethereum in economics. In summary, if you want to invest in a project with great potential and excellent gains, Ampleforth is a better opportunity for you.