Reflection is a stock token trading platform, where you can buy, trade, and redeem stock tokens. RUSD or Reflection Coin is the official native cryptocurrency of Reflection. It’s a stablecoin with its value backed by real assets, including cash.
What is a stablecoin?
A stablecoin is a cryptocurrency whose value is represented by a real physical asset such as a fiat currency like the dollar or a commodity like gold or any other financial instrument. The main purpose of stablecoins is to provide an alternative to regular cryptocurrencies which are usually highly volatile.
What is a stock token?
A stock token is a type of crypto token whose value is pegged with a share of stock on a publicly listed company on an exchange. In other words, stock tokens are also a type of stablecoins because their values are associated with real market entities (stocks).
The value of a stock token will go up or down as the value of its associated stock changes, and the holder can buy or sell stock tokens at any time on Reflection at the current price, which is in sync with the price of the underlying stock.
What is RUSD and what can you do with it?
RUSD is a stablecoin whose value will be backed 100% by a combination of cash and other stablecoins (namely, BUSD and USDC).
Since all stablecoins have a stable value, RUSD will also have a stable value that is free of the volatility of traditional crypto tokens. The main purpose of RUSD is to act as a default token for all transactions on the Reflection stock token trading platform.
In order to buy a stock token on Reflection, a user must have BUSD (Binance USD) in their linked MetaMask/WalletConnect crypto wallet. You cannot buy RUSD directly (as of now) so need to have other supported stablecoins in order to buy stock tokens on Reflection.
When a user redeems or sells their stock tokens on Reflection, they receive RUSD in their linked MetaMask wallet, which they can use to buy more stock tokens, hold as a store of value, or convert into another stablecoin like BUSD for free on the platform.
Here’s how to buy stock tokens on Reflection using stablecoins:
Purchase stablecoins such as BUSD on the Binance Exchange.
Transfer your BUSD to MetaMask or WalletConnect
Connect your MetaMask or WalletConnect account with Reflection
Use your BUSD to buy any stock token on the platform
Hold the stock token in your wallet and track its performance
To redeem your stock tokens for cash, just sell them to receive RUSD. Convert RUSD to another stablecoin for free. Sell stablecoins to receive cash on a crypto exchange.
Note: At this time, RUSD cannot be purchased directly on Reflection or any other exchange, but this functionality might be added in the future.
Why RUSD?
There are many benefits to using a native stablecoin (RUSD) over any other stablecoin or crypto token. Because stock tokens have a stable value unlike regular cryptocurrencies, only a stablecoin can be used to buy or trade them.
The biggest benefit of RUSD is to provide liquidity for the Reflection Trading platform which helps ensure that all buy and sell transactions are executed smoothly and on time without the need to rely on the availability of other stablecoins.