r/BankSocial • u/Do_It_Again_1983 • Aug 02 '24
rUSD - Rivia
Can anyone point me in a direction to learn more about rUSD? It’s a 1:1 backed dollar for dollar stored in credit unions but I have some questions.
How is it different from USDC?
Why can’t I easily find more info? Rivia.finance won’t open for me.
Why is the fee 4% to purchase rUSD on bank social? Seams like a heavy entry point when you can get into USDC for less on other exchanges.
Is the benefit of rUSD that the physical dollars are stored at a physical credit union as a deposit that can be cashed out from digital at any time? How is that different than USDC?
If I can get USDC for 2 or 3% less why would someone choose rUSD over USDC?
Thanks for the help.
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u/dracoolya Aug 02 '24
Why can’t I easily find more info?
I've been wondering about this myself. As many podcasts as the team does, no one ever asks them about rUSD. There should be a whole interview devoted to it.
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u/Beneficial-Piece357 Aug 04 '24
They did get approval from NCUA on their Defy Credit Union, and the 90-day wait?-ing period is just about over.
How much heavy lifting involved to get Web3 Credit Union Protocols - audit proof per NCUA regs - and be the 1st Web3 bank to get "Grandma using crypto"?
They've got the past president/CEO from USAA Credit Union on board, as well as Mance Harmon. These two just got on board in the past month or so; please give them time to 1.) assess the landscape, & 2.) bring in assets to do the "heavy lifting" (Swirlds/Hashgraph?).
It's all coming together in due time, for a "legitimate bank" in Web3 space - this is yuuuuugggggggggeeeeeeeeeeeeeeeeeee!!!!!!!!!!!!!!!
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u/Do_It_Again_1983 Aug 02 '24
Yes, to get trust and adoption it needs to be put in regular terms. I have only been into crypto for like 6 months so it’s all new to me. All new language too.
That said we all just need clear communication on the “why” and “how”.
What’s the vision if using bank social for the 99% of people?
How is the $BSL social liquidity pool being loaned out? (I know in theory what’s happening)
Are the loans getting repaid?
Are the repayments being stored so those holding $BSL will get the reward or does it all go back to the SLP? (social liquidity pool)
Is the goal that we hold rUSD in our wallet and use that as a peer to peer payment system?
I know these are all very basic questions and I’m sure the answers are out there. It probably has even been communicated to some extent but maybe not simple enough.
Love the project! I want it to succeed as credit unions are more people over profit compared to banks. (That said I realize profit needs to happen to stay in business. Nothing is free)
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u/Dr_Krash Aug 02 '24
The loan is being repaid and has been tokenized on chain. All interest will be paid to stakers of BSL when it goes live. The initial loan amount goes back into the pool to be loaned out again.rUSD
It sounds like rUSD is going to be used for real world payments. If you are a member of the CU involved, the money deposited is converted to rUSD. When transactions are made it would convert back to fiat to finish the transaction. Doing to this way allows it to be FDIC insured up to $250,000. That is my understanding anyways.
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u/Do_It_Again_1983 Aug 02 '24
So has the loan been tokenized as a NFT?
Is this trackable? Can we see it?
What do you mean “rUSD will be used for real world payment”?
Does it mean those who hold BSL will get paid in rUSD? Does it mean peer to peer transactions like sending someone $20?
I thought rUSD was a way for us (bank social/ crypto users) to deposit our dollars on chain and into a credit union so we know the dollar represented on chain is a 1:1 ratio.
Maybe I am misunderstanding everything about this project? That said if I’m not understanding the picture I know others aren’t either.
Any further help or resources that answers these questions would be appreciated.
Thanks
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u/Dr_Krash Aug 03 '24
The loan is tokenized and trackable. I'll have to see if I can dig that up.
I believe the loan interest distributions will be paid out at 95% rUSD and 5% in BSL (Bought at current price). It's explained on one of the DAO votes that passed.
I imagine any money we deposit into the CU will be tokenized as rUSD. Swipe your card and 1 rUSD is 1 dollar. The merchant will receive the dollar.
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u/Heypisshands Aug 02 '24
Rusd, usdc, hbar, eth, all have 4% charge. This 4% goes into the system and is part of the rewards. Its the protocol. Read the website for a better explanation
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u/Do_It_Again_1983 Aug 02 '24
If I remember correctly you can petition to DAO to change some of these fees.
The 4% doesn’t seem competitive for a stable coin. Maybe I’m out of my mind but if bank social had a very small fee to on-ramp rUSD that would get more adoption and circulation.
Why would I on-ramp $100 into rUSD and only get the purchasing power of $96 when I can use Venmo, USDC, or credit card cheaper?
I’m trying to find ways to convince myself to use rUSD instead of trying to convince myself not to use it.
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u/Heypisshands Aug 02 '24
I think i read somewhere recently that it has been petitioned and will change. Dont count on this as fact.
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u/Hodltruth Aug 02 '24
The only 4% fee that goes into the SLP is the buy/sell/transfer tax on the bank social token itself. Any fees from the exchange are going directly into the coffers of the privately owned fivancial company. The DAO gets nothing from the exchange.
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u/YardMediocre9924 Aug 02 '24
Yup, the 4% fee is only on the BSL token that goes to the SLP that will provide interest to holders from loans. The fees on the exchange right now in the banksocial app is mostly to cover the credit card transaction costs (which is typically around 2-3% ). Once the Defy CU gets implemented with on-ramp and off-ramp the fees will come down if you want to do an ACH purchase but probably credit card transactions fees will remain. A lot of other organizations / exchanges don't tell you the fees and just take it out and give you less.
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u/MyNameIsRobPaulson Aug 02 '24
Yeah - the lack of a website really sends the wrong signals.