Breaking Ground on rToken Rebase
With the continuous advancement of RICE’s liquidity mining, rToken’s rebase has reached the time to start. Before that, we will briefly explain two issues.First, why does rToken exist? Second, what is rebase.
Why does rToken exist? What does it mean?
Everyone will be puzzled about rToken. We have BTC, ETH, USDT and why do we need rBTC, rETH, rUSDT? Remember the original vision of our team? We hope to improve the capital utilization rate of governance tokens. Of course, we are only starting with mainstream assets. This is the first step for us to verify. It is also very important that mainstream assets can lay the foundation for our RiceQuant ecological development.
So how to improve the capital utilization rate?
We think everyone must be no stranger to Vault. Its working principle is to use the composability of DeFi. When you depost asset to Vault, the Vault smart contracts will cultivate income from other DeFi projects, so as to realize the appreciation of assets.
Then in RiceQuant, We also think everyone is no stranger to rLoanbar. When you stake USDT, you can do $RICE farming, and you can also choose to borrow rUSDT.
In our next rLoanbar V2, when you choose to borrow rUSDT, we will write excellent strategies by smart contract to help you with farming, such as deep diving into Pancake and Venus. This means the USDT you staked in rLoanbar Vault V2 will be transferred by smart contract. And at the same time, you can still borrow rUSD.
We will continue to expand rTokens’ arbitrage opportunities and application scenarios in the RiceQuant ecosystem, and will also expand cooperation with other partners. For the current stage, rUSD can mainly be used for $RICE farming, $SALT farming ($SALT is usded for NFT functions), and Rebase arbitrage.
In this way, is the USDT in your hands fully utilized?
What is rebase?
rTokens are elastic supply cryptocurrencies pegged to the price of popular assets, i.e BTC, ETH, USDT, BNB. It has been developed and will be governed by the RiceQuant DAO. Take USDT as an example, When $USDT price moves, $rUSD will automatically adjust its supply accordingly. rUSD’s aim is to mimic USDT’s price movements, with 24-hour rebasing period. This is reminiscent to projects such as Ampleforth, where the supply adjusts based on demand, while being pegged to the price of USDn.
rToken will maintain an elastic supply across all wallets holding the token. The total supply adjusts based on demand to reflect the pegged price of Peg-Asset. The first rebase will be completed recently, with rebases scheduled daily. The token has the benefit of being non-dilutive. This means that like Bitcoin, owning 1% of the overall supply will not change unless you actively make a transfer. One of the key benefits of rToken is the consistency of its mechanics, possessing rules governing its behavior that are the same for everyone who holds it.
Workflow of rebase below, and we strongly recommend every Ricer to study it carefully.
Never stop building. 🛠
RiceQuant is the Processing Farm for Governance Token Capitalization