Apr 22, 2020 02:30 UTC
Apr 22, 2020 at 02:30 UTC
Bitcoin’s RSK Sees Leveraged Token and New Stablecoin
The new DeFi platform, RIF on Chain, will highlight RIF Dollar, RIFX and RIFpro. RPRO is a token that reflects the cost of RIF and in addition awards passive income by collecting a portion of the fees generated by the platform transactions.
RDOC is pegged to the USD and backed by RIF tokens. Not at all like contending Ether-backed decentralized stablecoin DAI, RID Dollars can be obtained straightforwardly by spending RIF without making a collateralized debt position.
The RDOC stablecoin is minted each time there is a sure measure of RIFpro marked on the platform. In conclusion, RIFX is a token that offers exposure to RIF’s price variances with leverage. Diego Gutierrez Zaldivar, CEO of IOV Labs — the firm behind Rootstock — classified –
“RIFX is a RIF leveraged decentralized long position. Based on an automated smart contract that renews every 30 days, the product has a leverage factor of 2X at the very beginning of its lifespan and a variable leverage afterwards based upon certain variables such as the price of RIF token and the amount of RDOC stablecoins in the ROC platform. Users must be aware of the risks. […] The ROC platform, in this current version, does not have a Margin Call notification.”
A BTC-Based Framework
Zaldivar brought up that RIF is merge-mined with BTC and use BTC’s blockchain for security. He additionally clarified that Bitcoin is integrated into the system and its role will be extended later on –
“Bitcoins are locked on-chain and RBTC tokens are minted on the RSK network accordingly. RBTC (and thereby BTC) will serve as collateral for loans, as a pegging mechanism for RIF Dollar and more.”
As previously reported, lead developer at Kava Labs Ruaridh O’Donnel called attention to that there is incredible expectation for the development of Bitcoin’s DeFi ecosystem. With regards to the more extensive DeFi space, it is seeing incredible improvements at an amazingly quick rate.