Resolv Liquidity Provider Token (RLP)

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Resolv Liquidity Provider Token (RLP) is the token associated with the Resolv protocol, linked to supporting an overcollateralized stablecoin called USR. The system's structure uses a tokenized insurance fund called RLP to help sustain USR's behavior.

The role of RLP in the USR stablecoin

The protocol maintains USR through an ETH collateral portfolio, with coverage above 100% to back the stablecoin. The excess portion of the collateral is allocated to back RLP, known as the Resolv Liquidity Pool.

This design aims to protect USR against market and counterparty risks. In return, RLP participants receive a larger share of the profits associated with the collateral pool.

Minting, redemption, and RLP price variation

RLP has a price that represents the value of the ETH backing per unit of the token. As the price may vary, the amount of collateral required to mint or redeem depends on the most recent quotation.

In the issuance and redemption of USR, depositors operate on a 1:1 basis, and when withdrawing USR the user receives an amount equivalent to the nominal value deposited.

USR staking and yield-bearing version

Users can stake USR to obtain a yield-generating form called stUSR. In this way, the system connects participation in USR to obtaining a tokenized version with yield.

USR can be issued by depositing liquid assets such as USDC or USDT, on a 1:1 value basis, according to the protocol logic described in the base text.