Introduction

The Synthetic Currency Protocol on Solana | Earn up to 30% APY on Liquid Stake by minting USDR

Hi - Welcome to Reflect Documentation. You're here to learn about Better Internet Money and how it might be the right fit for your on-chain yield! - That's great. Let's start with some basic information below.

Reflect is Decentralized Finance built from the Validator upwards. It is a suite of financial primitives that enable anyone to create and redeem "Better Internet Money." Reflect is just a synthetic RWA protocol; however, it's built with native yield in mind. Let us explore.

What is Staking or 'Native Yield'

Staking on Solana involves locking up your SOL tokens to support the network's security and operations. In return for staking your tokens, you earn a native yield, which is a portion of the rewards generated by the network.

These rewards come from transaction fees and newly minted SOL tokens. By staking, you help secure the network, participate in its governance, and earn passive income through additional SOL tokens. This process is often managed through a validator or staking service, ensuring that your staked tokens contribute to the overall health and efficiency of the Solana blockchain.

Now that you have a brief understanding of Native Yield, let's explore how Reflect Protocol uses natively yielding assets to create synthetic RWAs like Money!

What are 'Synthetic RWA's'

Synthetic Real-World Assets (RWA) are digital representations of physical assets or traditional financial instruments created on the blockchain. They mimic the value and behaviour of their real-world counterparts but exist purely in digital form.

In the context of Reflect Protocol, our Delta-Neutral USDR is an example of a synthetic currency.

So, we have now covered Native Yield and Synthetic Real-World Assets and can start to see how combining these two concepts provides the opportunity for better digital representations of Money.

head to the next page to discover "Better Internet Money."