Better Internet Money
What are Productive Digital Currencies and why is this Better 'Internet Money'?
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What are Productive Digital Currencies and why is this Better 'Internet Money'?
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Better Internet Money can be described as Productive Synthetic Representations of FIAT. That is, they are inherently productive without the need for the asset holder to utilize them further in any manner that would typically be found in traditional ISA savings accounts, etc.
productivity in this instance refers to the potential for both high yield and high velocity of value that can compose across multiple financial primitives. In simple terms, money with yield built in - which can increase the yield of other financial products.
Typically, these offerings would be privatized, centralized, and custodial, like in the case of Ethena and other comparable products. In our opinion, this outright negates the purpose of such an instrument on a peer-to-peer decentralized network. Reflect (rUSD) is designed with Decentralization in mind.
Reflected Currencies are the first of their kind, fully open peer-to-peer productive synthetic currencies. That is, anyone can mint any world currency starting with dollars with near zero latency and almost instant productivity (yield)
Every aspect of Reflect Protocol lives on the Solana Blockchain, bringing an atomically composable way to create Delta-Neutral Synthetic Currencies to all developers and users of the network. As a byproduct of this design decision, depositors benefit from the non-custodial nature of the protocol as opposed to other comparable offerings which utilize custodial, off-chain or even automated systems for management, which introduce risk extremities which are not needed.
What can be enabled by Better Internet Money?
Self Repaying Loans
A long-dated return of principle. I.E long-term zero cost loans with minimal risk.
Buy Now, Pay Never. An applied version of Self-Repaying Loans to smaller online retail purchases.
Non-Speculative Proof-of-Stake Remove the speculation price risk associated with staking proof of stake assets.
Self-Compounding Savings A Cash portfolio that continually increases its productive money supply.