DIGITAL RESERVE

The value of assets held in DR Vaults can fluctuate because of the market conditions and there can be a substantial risk that you lose money depositing DRC into DR. You should carefully consider whether using DR is suitable for you in light of your individual risk profile and financial condition.

The deposited DRC will first be converted to WETH via the Uniswap router. The WETH will then be divided by the portfolio assets' allocation percentages, and converted to those assets.

The new assets' total worth is then calculated and minted as DR-POD.

The new DR-POD total will be the new total worth divided by the current unit price. The newly minted amount of DR-POD will then be given to you as your Proof of Deposit, in your DR Vault.

DR-POD is a Proof of Deposit given to a user upon their deposit of DRC into a DR Vault. DR-POD is only ever minted at the time of a deposit into a DR Vault and is burnt at the time of a withdrawal through the Digital Reserve.

The initial supply of DR-POD in a DR Vault always starts at 0. A Genesis Deposit of 1000 DRC to each respective DR Vault is made by the DRC Foundation Multi-sig wallet to create the initial DR-POD supply with a favourable numerical value.

The unit price of DR-POD equals to the total DR Vault holding worth, divided by the total supply of DR-POD.

The total supply of DR-POD will change according to the value of subsequent deposits into the Vault. When new assets are stored in a DR Vault, the new total assets worth, divided by the DR-POD unit price gives the new DR-POD total supply. The newly minted DR-POD goes to the depositor.

This allows the DR Smart Contract to make precise calculations of DR-POD's value in relation to the Vault's assets. From this value, withdrawals from DR Vaults are processed and historical price analyses are formulated.

DR-POD’s Net Asset Value (NAV) is the DR Vault's total asset worth, divided by the total supply of DR-POD in its respective DR Vault.

The price oracle function for DR-POD’s Net Asset Value is provided in the DR Smart Contract.

Rebalancing is the process of realigning the weighting of a portfolio of assets to the strategy allocation that is defined.

When rebalancing, the DR Smart Contract will check each of the portfolio asset's worth, and the DR Vault's total worth. Based on the designed portfolio allocations, the DR Smart Contract will calculate how much each asset should be worth.

Some of the assets' worth might exceed what it should be, whilst some would be below what it should be. The DR Smart Contract will then convert the overflowed parts of the assets to ETH. And then further swap the ETH to make up for the assets that are below the designed percentage value.

Rebalancing is only executable by the DR Smart Contract owner - the DRC Foundation Fund Multi-sig Wallet and will occur either weekly or monthly, depending on market conditions.

When you choose to withdraw your capital from the Digital Reserve, the DR Smart Contract will calculate the share of the assets you wish to withdraw and convert that to WETH, then further convert to DRC and transfer to your personal wallet.

This is not possible based on how the Uniswap Router and AMM (Automatic Market Making) mechanics work. There will always be liquidity in the DRC Liquidity Pool as it is time-locked and unable to be pulled unexpectedly from the decentralised Uniswap market. The main DRC Liquidity Pool keys will also be managed by the DRC Foundation upon unlock in May 2021.

Yes, the DR Smart Contract is secure and has been audited. It was audited by Dedaub and you can read the Security Audit Report PDF. All Critical Issues raised during the auditing process were resolved and incorporated into the Ethereum Mainnet DR Smart Contract code.

Currently, we do not provide the insurance coverage of funds held in the DR, however this feature has been added to the DRC Road Map (Q4 2021).

Please note that DR Smart Contract security was verified by an independent blockchain development firm and DR admins are not able to withdraw any funds from DR Vaults, because of the DR Smart Contract restrictions.

If you already hold DRC tokens, using the Digital Reserve is optional. The Digital Reserve is a suitable option for people who want a simple and secure solution to preserve the USD value of their personal DRC holdings. Alternatively, people can simply hold their DRC tokens and rely on its potential price appreciation.

Feel free to jump onto either the DRC Telegram Group or DRC Discord Channel and let us know what help or support you need with using the Digital Reserve.

A YouTube tutorial will be provided soon.