What is Resolv?

(Source: ResolvLabs)

Resolv is a protocol that maintains USR, which is a stablecoin supported natively by Ethereum (ETH) and Bitcoin (BTC) and pegged to the US dollar.

The core design of the Resolv protocol

1. USR: A new stablecoin based on ETH and BTC

USR is a stablecoin fully backed by ETH and BTC, which can be minted or redeemed at a 1:1 ratio. It has the following features:

• Fully convertible: can be exchanged for equivalent ETH or BTC at any time.
• Over-collateralization: In addition to the basic collateral assets, there is an additional layer of insurance (RLP) for protection.
• No built-in earnings: USR itself does not generate earnings, but can be staked as stUSR to earn rewards.

2. RLP: The liquidity and insurance pool of Resolv

RLP is a liquidity insurance token backed by excess ETH and BTC assets, primarily used for the following purposes:

• Price fluctuation: RLP has an actual price that fluctuates based on the underlying asset.
• Support for USR: RLP serves as an insurance mechanism for USR, absorbing risks and fluctuations.
• Earnings: RLP holders can receive a higher proportion of profit distribution in exchange for the risks they undertake.

3. Minting and Redemption

• USR and RLP can both be directly minted by users using ETH or BTC.
• The corresponding collateral assets will be returned proportionally at the current price when redeemed.
• The entire process is completed through smart contracts, transparent and trustless.

The technical foundation of Resolv

The innovation of the Resolv protocol lies in establishing a market-neutral (Delta-neutral) asset pool. This strategy includes:

• Spot + Perpetual Contracts: Use ETH and BTC spot while establishing corresponding short perpetual contracts in the CEX or derivatives market.
• Price hedging: when the spot price rises, the perpetual position incurs losses; when the spot price falls, the position profits, and the two offset to form a stable net value.
• Decentralized custody: Most assets are staked on-chain, with a small portion used as margin for futures trading, through institutional custody.

This mechanism is similar to traditional financial hedging portfolios, allowing stablecoins to break free from dependence on fiat currency reserves and return to decentralization and crypto-native assets.

The profit distribution mechanism of Resolv

The Resolv protocol will allocate daily based on the earnings of the asset pool, divided into the following three parts:

• Basic rewards: Allocated to stUSR and RLP holders who are staking.
• Risk Premium: Allocated only to RLP holders
• Protocol fee: Allocated to Resolv Treasury for future development and governance.

If there is a net loss on that day (such as funding fees for perpetual positions), no profits will be distributed for that day, and the losses will be borne by RLP.

The advantages of using Resolv

Resolv offers a new experience for stablecoin users through a series of innovative designs:

• Decentralized stablecoins that do not rely on USD reserves.
• High capital efficiency, no need for additional over-collateralization to mint coins.
• Market-neutral risk control, not afraid of ETH/BTC price fluctuations.
• Expected convertibility and insurance protection
• Profit-sharing model, RLP and stUSR can obtain protocol profits.

The Resolv stablecoin model offers a new architecture based on blockchain derivatives and asset tokenization, with the potential to play a key role in the future of decentralized finance.

The token economics of Resolv

RESOLV is the utility token of Resolv, which includes long-term coordination and governance mechanisms, with a total supply of 1,000,000,000 tokens.

Token Distribution

According to official information, the supply distribution of the RESOLV token is as follows:

• Airdrop (Airdrop Season 1) — 10%: Unlocked immediately at TGE (Token Generation Event); top wallet addresses have a short-term unlocking schedule.
• Ecosystem and Community Building — 40.9%: Initially a maximum of 10% will be unlocked, with the remaining 24 months unlocking linearly; used to fund developers, ecosystem incentives, and marketing promotions.
• Team and Contributors — 26.7%: One year Cliff; unlock period is 30 months linear unlock.
• Investors — 22.4%: One year cliff; unlock period is 24 months linear unlock.

This design can balance short-term liquidity with long-term value growth, ensuring a dynamic equilibrium between the team and the community.

Functions and Uses

• Governance Function: Future protocol upgrades and asset strategy adjustments will be governed by RESOLV holders.
• Incentive Mechanism: Participation in community governance, liquidity provision, promotional activities, etc., can all earn RESOLV rewards.
• Staking rewards: There may be staking rewards based on RESOLV and DAO voting in the future.

RESOLV spot trading will start on June 10, 2025, at 21:00 (UTC+8):https://www.gate.com/trade/RESOLV_USDT

Summary

The emergence of Resolv has redefined the design philosophy of stablecoins: de-dollarization, decentralization, and asset nativization. Through the value reserves of ETH and BTC, combined with market-neutral strategies and high capital efficiency, Resolv is not just a stablecoin, but a complete architectural design of a DeFi financial stability layer. If it can successfully expand to more blockchains and application scenarios in the future, Resolv may become one of the most representative decentralized stablecoin solutions in the Web3 world.