Analysis & Opinions

RIF on Chain (ROC): A New Kind of Stablecoin

RIF on Chain (ROC) offers a fast and secure platform for transacting RIF-backed products, as well as an opportunity for RIF token holders to generate passive income.

The RIF on Chain Defi platform will principally consist of three main assets that interact with each other, which have been developed to serve different purposes depending on users’ needs. These include: (i) the RIF Dollar (RDOC), an asset-backed stablecoin pegged to the US Dollar and fully collateralized with RIF tokens; (ii) the RIFpro (RIFP) token, the cornerstone of the ecosystem enabling the minting of RDOC and RIFX through a token staking model; and (iii) RIFX, a leveraged trading asset with exposure to movements in the RIF token price. 

The RIF Dollar stablecoin (RDOC) would constitute a crypto-collateralized stablecoin on the basis that it uses the RIF token as collateral. What makes this stablecoin different from other crypto-collateralized stablecoins, is the mechanism through which RDOC is issued. RDOC stablecoins will be minted whenever there is a certain amount of RIFpro (RIFP) staked in the platform. The essence of RIFP is to allow RIF token holders to generate a passive income, principally from fees generated by users interacting with the platform, rather than as a result of RIFP being a leveraged product by design.

Here is a brief overview of the main characteristics for each of these tokens:

RIF DOLLAR (RDOC)

The RDOC is a stablecoin pegged 1:1 to the US Dollar and guaranteed by a smart contract. Users will be able to redeem their full RDOC position at contract expiration or partially during the lifespan of the contract depending on the availability of redeemable RDOC stablecoins.

Another important feature about RDOC is that it is fully collateralized by RIF tokens, and users can acquire them directly in the platform without needing to provide any collateral or CDP like other DeFi platforms. 

The RDOC token can be transferred among users and can be used for purchasing services and products, specifically dApps blockchain products that will be released on the Rif Marketplace. Another characteristic of the token is that it can be stored in any compatible hardware wallet.

RIFPro (RIFP)

RIFP is a token that mirrors the RIF volatility, plus a small amount of leverage that it receives from the RDOC stablecoins. The RIFP token will benefit from a percentage of the transaction fees charged by the ROC platform to the users of RDOC and to the traders of RIFX. This is why the RIFP is a suitable token for RIF holders who want to earn a passive income with a minimum leverage on its RIF token position.

RIFX 

RIFX is a RIF leverage decentralized long position. Based on an automated smart contract that renews every 30 days, the product has a leverage factor of 2X at the very beginning of its lifespan and a variable leverage afterwards based upon certain variables such as the price of RIF token and the amount of RDOC stablecoins in the ROC platform. Users must be aware of the risks associated with trading a leverage asset and should understand that their positions might be liquidated. The ROC platform, in this current version, does not have a Margin Call notification. The RIFX product can be sold at any time without needing to wait until expiration like in the RDOC stablecoins.

Will 2020 be the year for DeFi? Looks like it is going to happen and RSK, the smart contract platform on top of Bitcoin, is making a great contribution to the ecosystem.

1 comment on “RIF on Chain (ROC): A New Kind of Stablecoin

  1. RSK owns 50% of all rif tokens, i can see this being a great way for them to manipulate the market, RIF could have been used entirely for DeFi but instead they created other tokens. If Diego was being honest he should have run an ICO for building RSK and himself because RIF holders got screwed.

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