Introduction to Strategy Backed US-Dollars

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.

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.

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.

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.