Reflected Digital Currencies (RDC)
RDCs are currencies produced and managed by Reflects Decentralized program infrastructure.
Introduction to RDC’s
RDC’s are an onchain, fully decentralized token denominated hedge - Where each token represents a US Dollar or its pegged equivalent in underlying capital. Reflected Currencies make it easy to hedge Solana Liquid Stake Tokens (LSTs) and earn US Dollars in interest.
How Reflected Currencies are created
RDC’s are created when users deposit into Reflect Protocol in order to hedge their liquid stake tokens (LSTs). The protocol accepts multiple LSTs as collateral and issues a single unified US Dollar denominated token (USDR) in return at a 1:1 cash value to the deposit.
LST Deposits converging into a Tokenised Dollar (USDR).
How Redeeming Reflected Currencies works
Redemption of RDC’s is the exact reverse of the Deposit flow. Users will Burn (An onchain redemption mechanic) the equivalent amount of USDR (US Dollars Reflected) for the underlying amount of requested LST.
Using Reflected Currencies
Discover common use cases for Reflected Currencies below such as hedging your Solana assets to earn US Dollars (USD), or international payments in currencies such as Hong Kong Dollar (HKD).
Hedge SOL (Solana)
For every Liquid Staked Solana that users deposit, the program opens an equal short via Perp DEX’s.
Earn US Dollar Yields
Reflect compounds interest earnt from Staking and Funding Rates and pays this back to depositors in US Dollars (USDR).
Swap to USD Pegged Fiat
Utilise MirrorSwap to convert US Dollars into any global US Dollar pegged currency. Facilitating instant zero slippage payments with no fees on forex.
Developers: Integrate RDCs
Reflect makes it seamless to offer Tokenised Yields in US Dollars for Liquid Staked Solana Tokens (LSTs).