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Key Takeaways

Resolv is a decentralized finance (DeFi) protocol that maintains a stablecoin known as USR. It is pegged to the US dollar and backed by ether (ETH) and bitcoin (BTC).

Resolv uses a market-neutral strategy by hedging ETH and BTC with perpetual futures to maintain price stability.

The protocol also features the RLP and the RESOLV tokens. RLP serves as an insurance layer to protect USR's peg and absorbs systemic risk, while RESOLV is a governance token.

The Resolv system distributes profits daily from staking and hedging activities to RLP holders and users who stake USR.

Introduction

When dealing with decentralized finance (DeFi) services, stablecoins are often an essential part of the experience. Whether you are a developer or a user, stability, collateral security, and resistance to centralized risk are key factors to consider when using DeFi products..

Resolv is a protocol designed to offer a unique stablecoin system for the growing DeFi space. According to the official documentation, its native stablecoin, USR, is backed by crypto assets (like ETH and BTC), overcollateralized, and designed to hold its dollar peg through smart collateral management and market-neutral strategies.

How Resolv Works

USR stablecoin

USR is a stablecoin pegged to the US dollar and backed by on-chain ETH, staked ETH (stETH), and BTC. Users can mint or redeem USR on a 1:1 basis with supported collateral.

Key characteristics of USR:

Collateralized with a 100%+ reserve of ETH and BTC.

Overcollateralized via an insurance layer (RLP token).

Can be staked to create stUSR, a yield-bearing version of USR.

Designed to maintain its peg through arbitrage and redemption mechanisms.

Market neutrality via hedging

One of Resolv's defining features is its so-called delta-neutral strategy. The protocol maintains its dollar peg by hedging ETH and BTC price fluctuations using perpetual futures contracts. By using short positions, the gains or losses in the spot price of the collateral are offset by the futures positions.

In other words, if the spot price goes up, the profit is offset by the losses of the short positions, and if the spot price goes down the losses are offset by the shorts’ profit. This dynamic helps keep the USR value relatively stable in USD terms.

In addition, hedging takes place across both centralized (CEX) and decentralized exchanges (DEX) to reduce platform-specific risk. Exposure to centralized entities is carefully managed with dynamic collateral limits, custodial solutions, and a dedicated Protection Layer (RLP).

The RLP Token

What Is RLP?

RLP (Resolv Liquidity Pool) acts as a second-layer buffer and insurance mechanism for USR. It holds surplus ETH and BTC collateral above the amount required to back USR directly. 

RLP is designed to:

Absorb market risk and counterparty risk from centralized exchanges.

Protect USR’s peg during volatile or stressed market conditions.

Offer higher yield potential to compensate for taking on risk. 

RLP can be minted and redeemed by users using collateral, but unlike USR, its price fluctuates depending on the protocol’s collateral ratio and profitability.

Even if the Protection Layer (RLP) becomes depleted, USR’s backing remains fully intact and redeemable. In such cases, the system auto-balances: a thinner RLP pool means higher yields, which attracts more collateral and re-strengthens the insurance buffer.

Profit Generation and Distribution

Resolv’s model is not only about stability—it’s also structured to generate sustainable, predictable returns through a mix of ETH staking rewards, funding fees from perpetual futures, and optimized collateral management.

These profits are distributed daily across three main streams:

Base reward: Paid to both staked USR (stUSR) holders and RLP holders.

Risk premium: Exclusive rewards to RLP holders for assuming greater systemic risk.

Protocol fees: Allocated to the Resolv treasury for future development and operations.

If losses are incurred, such as from negative funding rates in futures, RLP absorbs those losses, not USR. This separation helps preserve USR’s peg and ensure user confidence in its stability.

Governance and Utility: RESOLV Token

What Is RESOLV?

The RESOLV token is the native utility and governance token of the Resolv ecosystem. It plays a role in protocol governance, reward distribution, and community participation.

Token supply and allocation:

Total supply: 1 billion RESOLV

10% allocated to early airdrop campaigns.

40.9% for ecosystem and community incentives.

26.7% for team and contributors (with vesting).

22.4% for investors (with vesting).

stRESOLV and Governance

RESOLV holders can stake their tokens to receive stRESOLV, which unlocks voting rights on governance proposals, staking rewards from protocol profits, Points Boosts in Resolv Points campaigns (similar to user incentives in other DeFi protocols).

Long-term stakers benefit from reward multipliers, with the highest boost (2x) reserved for users who maintain staked positions for over a year.

RESOLV on Binance HODLer Airdrops

On June 11, 2025, Binance announced RESOLV as the 21st project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from May 28 to 31 were eligible to receive RESOLV airdrops. A total of 20 million RESOLV tokens were allocated to the program, accounting for 2% of the total token supply.

RESOLV was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Resolv presents an alternative approach to stablecoin architecture, one that leans on crypto-native collateral, market-neutral strategies, and a layered defense system to manage systemic risk. With hedging, staking, and insurance built into its core, Resolv aims to offer a more sustainable stablecoin model without relying on fiat reserves or centralized issuers.

Further Reading

What Is a Stablecoin?

What Are Funding Rates in Crypto Markets?

What Is Short Selling?

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