What is rUSD

Reya Network will deploy its own stablecoin, rUSD, as a native and chain-agnostic means of settling payments within the system. Reya’s cross-collareralization features will still allow for posting of collateral in a variety of coins bridged from other networks. However, using its own stablecoin, Reya Network ensures that the exchange of PnL between parties will be done in a neutral native token.

In the first instance, rUSD is just wrapped USDC natively bridged to Reya Network. Any USDC amounts will automatically be wrapped before being posted as collateral in a margin account. Any rUSD can be unwrapped for withdrawal at any moment, as long as the amount is actually withdrawable from the margin account and not locked to cover margin requirements.

However, this is just a temporary step in development, and mechanism design for rUSD is an integral component of future plans for Reya Network. In particular, the rUSD contract is upgradeable to allow for:

  1. Native yield: as an integral component of design for rUSD is leveraging both mechanism design and integration within Reya Network to enable native yield for rUSD, making it not only a neutral means of settlement for derivatives, but also a viable store of value within the system.

  2. Synergies with the rest of the Protocol Layer: Reya Network is uniquely being developed from a holistic point of view, so that the components of its Protocol Layer reinforce and support each other. Ultimately, rUSD will be the first stablecoin deeply embedded in a trading system. As an example of this sort of integration is the possibility for a Payments Clearing Module, which would enable settlement payments in the Derivatives Clearing Module to go through by temporarily expanding the stablecoin issue, and pushing auto-exchange logistics out of it.

  3. Full currency mode for Reya Network: once completed, the plan is to have rUSD to serve as the universal currency within Reya Network. In particular, all fees in Reya are charged in rUSD. Also, insurance funds, any underwriting and staking vaults will be denominated in rUSD.

While Reya Network welcomes the development of new stablecoins within the ecosystem, rUSD will play a distinguished role. In particular, the governance layer will leverage rUSD in backstopping the system. Ultimately, rUSD will be the first stablecoin to be deeply intertwined into a full financial system with its own L2. This means that there are built-in incentives to hold rUSD through the trading and investment opportunities.

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