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1 year ago Issue Status: 1. Open 2. Started 3. Submitted 4. Done
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Prize Title
Grand Prize: Stablecoin Defi Innovation
Prize Bounty
1st Place: $50k (25% USDC 75% RSR)
2nd Place: $30k (25% USDC 75% RSR)
3rd Place: $20k (25% USDC 75% RSR)
Challenge Description
Reserve Protocol is a permissionless platform for anyone to build, deploy and govern asset-backed stablecoins with shared DeFi yield and backstop-insurance. We think the future could host a variety of stablecoins each with different “jobs to be done.” Eventually, there could arise a global reserve currency that retains its value indefinitely, is not too volatile, and is outside the fumbling of geo-political and big tech manipulation.
Do you have a view on how the future reserve currency of the world should work with existing defi infrastructure? Or for a cool new thing that can now exist because of the Reserve Protocol? Or something that you expect to be useful to others building or actors in the Reserve ecosystem?
Yes? Then read on!
Want to create a product on the platform? Here’s some things to think about:
At Reserve, we see our new protocol as a platform for people to launch products and even businesses on. So go ahead, build and pitch your product idea. Come up with a clever, catchy brand. Figure out the economics for how this can be sustainable for this system, and maybe even for you as a builder. Build new collateral plugins or leverage existing one. Fork the [Register.app](http://register.app/)Register.app repo and create a custom website and interface to mint it, redeem it, and stake/unstake RSR.
Looking for some inspiration? Here are a few financial products that could be interesting:
Decentralized High Yield Savings Account Currently most crypto savings products are offered by centralized players, but as the trust in centralized players continues to deteriorate, users will look for decentralized alternatives. There is an opportunity to create the leading on-chain high yield savings product. The creator of this product could create its own on-chain savings product, fully backed by a custom basket of yield generating collateral, and then split the yield between the token holders, insurance providers, and the creator.
Branded Loyalty Dollar Loyalty dollars are extremely common in our society today, with one of the most recognizable example being the Starbucks loyalty program. The way current loyalty currencies are set up, enabling such a program ends up being a cost for the business, as they need to pay Visa or Mastercard to enable this functionality. By using Reserve to create this branded stablecoin, the business could choose to direct the underlying yield to themselves, in turn resulting in revenue generation for the business.
Crypto ETF Product The Reserve Protocol makes it easy to bundle together various yield generating collateral assets to create a customized financial product, while utilizing an insurance backstop and fully on-chain transparency to protect users. This functionality is perfect for creating crypto ETF, as the deployer can choose their custom basket of underlying assets, and even using yield generating assets to generate revenue.
When designing your defi product, here are some things to consider:
Should there be a flywheel that builds up treasury tokens for increased voting power in defi? Should it instead fund marketing operations? How much AUM and revenue is needed to do that?
What is the “risk / reward” profile of this token? Is it high yield, high risk? Low yield, low risk? Something else? Do the collateral plugins exist? Do they need to be written?
This is for you to decide and invent. Feel free to leverage any and all content we’ve created for inspiration or just use your team’s own 🧠.
Want to create a tool for the ecosystem? Here’s some things to think about:
There are two main constituents in our ecosystem: 1) governors / stakers and 2) RToken holders. These groups have some similar, but many different needs and potential pain points.
There are also other smaller but no less critical roles in the ecosystem: Gaurdians, Pausers, “economic designers”. Economic designers might need to know more than a typical yield-farmer: other risk factors, how those interplay and overlap with other types of collateral, etc. Pausers and Gaurdians need to be on-call with varying SLAs and be able to make fairly quick decisions based on data that is not at their fingertips.
Submission Requirements
Judging Criteria for your Creation
Our single overriding criterion for judging submissions is the importance of your project to the overall Reserve ecosystem, as determined by the Reserve judges.
The bigger this thing could make the overall ecosystem, the more excited we will be about it. “Importance” is admittedly vague, but is composed mostly of the following subcriteria:
Winner Announcement Date
Two weeks following the end of the hackathon (Jan 6, 2023).
To accept the prize, winners will need to complete and sign one of the following on Docusign:
W-9 (for US citizen/resident or company) W-8BEN (for non-US person) W-8BEN-E (for non-US company/entity) We are quite secure in how we collect KYC information and will never share PII with anyone outside of necessary tax authorities.
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