A decentralized platform allows investors to gain access to well-balanced baskets of digital assets that serve as an effective store of value.
Digital Reserve offers several portfolios — the construction of which are based on votes from community members. The project says no single entity or person is in control, as users interact directly with smart contracts.
The first portfolio is geared toward capital appreciation. While 40% is allocated to Wrapped Bitcoin, 40% is also dedicated to PAX Gold, an asset-backed token that is pegged to a troy ounce of the precious metal. The remaining 20% is allocated to Wrapped Ether.
A less volatile alternative, which aims to deliver capital preservation, sees 90% of the vault allocated to the USDC stablecoin. The remaining 10% is then split equally between PAX Gold and Wrapped Bitcoin to reduce inflation risks.
The third portfolio focuses on high volatility and “aggressive capital appreciation.” While 30% is allocated to Wrapped Ether, the remaining 70% is divided between the Harvest and 88mph reward tokens. Another portfolio focused on alternative assets is currently in the proposal stage, and proposals are being accepted on the DR Discord channel. Interest-bearing vaults are set to emerge in the second quarter of 2021.
How it works
At the center of this project is the Digital Reserve Currency, which is designed to become a decentralized digital store of value with a limited supply and a zero inflation rate.
Digital Reserve says its approach can ensure holders of DRC tokens can hedge against inflation and find portfolios that match their appetite for risk. A diversified, balanced portfolio has never been more important in these volatile times — and the project aims to ensure that achieving one is as straightforward as possible. A user-friendly interface means deposits and withdrawals can be completed instantly, and investors can track their portfolio’s performance in real time.
All of the portfolios offered by Digital Reserve are regularly rebalanced on a weekly or monthly basis, depending on market conditions. The smart contract underpinning DR has been audited by Dedaub, helping users gain peace of mind from a security standpoint. In the coming months, funds held in DR vaults are set to be insured.
More insights from Digital Reserve here
Additional vaults are going to be created on a regular basis going forwards — and although the crypto markets have been performing strongly in recent months, DR’s ecosystem of products are designed to help investors preserve their capital in the event of an economic downturn.
Simoleon, a hedge fund that operates under Halcyon Global Opportunities with $700 million in assets under management, recently purchased an undisclosed amount of DRC tokens on the secondary market. Their investment in DRC comes from a strong belief in its value proposition and long-term viability.
At the beating heart of the project is the DRC Foundation, which is headed up by five community members who are voted in by DRC holders once a quarter to help advance the platform’s development. Its mission is to advocate for the ecosystem and to facilitate its global adoption and success, rather than control or manage the network itself.
“We believe that because of the flaws in the current financial system, with its overvalued assets, leveraged products, and centralized manipulation, the demand for decentralized and censorship-resistant “store of value” assets will increase significantly,” the foundation says.
Looking ahead, the creation and launch of new vaults is a priority for the coming months — as well as the expansion of a global outreach campaign. In the second half of this year, the DRC Foundation intends to explore partnership opportunities with international organizations, all with a view to making its crypto platform more accessible in developing countries. Work will also begin to establish ties with financial service providers, giving them an opportunity to embed DRC into their own ecosystems.
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