Introduction to Strategic Stablecoins
Stablecoins designed to enable next-generation fintech and to scale onchain economic activity 100x.
Welcome to Reflect.Money Documentation
You’re here to learn about Reflect Money and how it allows for the tokenisation of onchain defi strategy in the form of US Dollars. Let’s start with some basic information below.
What is Reflect Money?
Reflect Money is Spinal-Level Financial Infrastructure for onchain capital efficiency through permissionless and programmable intermediation - its systems enable users and developers to capture the productivity of any onchain monetary expanse seamlessly without dealing with centralised parties, human-operated risk management, etc.
Financial Intermediation in the blockchain industry has traditionally been centralised, operated by closed-source, human-reliant systems that don’t scale to meet the growing monetary expansion of onchain environments such as DeFi, thus leading to massive capital inefficiency and a major segmentation of available capital. Reflect solves this through transparent, strategic money that anyone can issue and redeem, backed entirely by onchain DeFi strategy.
Core Components of Reflect Money
Reflect Money is comprised of three foundational level systems, which can be found below:
Tokenisation
Tokenisation refers to the act of representing something (an object, financial product or fungible asset) on a public blockchain as a ‘Token’ which is tradeable and transferrable amongst accounts. In the case of Reflect it is tokenising deposits in its strategies.
Decentralized Financial Strategy
Financial Strategies such as lending, asset diversification, basis trades, money markets and more can all be taken advantage of onchain today at the cost of opportunity i.e. your deposit mostly stays with the program in which you deposit. Reflect builds programs to match the most effective onchain financial strategies where your deposit is tokenised in stablecoin format, equalling zero opportunity cost.
Verifiable Insurance
Every tokenised DeFi strategy (Stablecoin) issued by Reflect Programs is coupled with its own unique insurance program, which allows for the automation of insurance claims through verifiable consensus on attestations - it achieves this through means of zk and restaking for economic security and capitalisation.