What Is R U Generous (RUG)?

R U Generous (RUG) is a blockchain-based decentralized reserve currency protocol available on the Avalanche (AVAX) network. The platform aims to establish price flatness for a representative basket of goods without using traditional currency so the crypto industry can break free from conventional finance once and for all. The network seeks to create a policy-controlled currency system native to the AVAX network, with DAO regulating the token behavior at a high level.

The R U Generous platform seeks to solve the problems arising while transacting using the USD-pegged stablecoins by creating a non-pegged stablecoin, RUG, focusing on supply growth rather than price appreciation. According to the whitepaper, RUG can function as a currency that can hold its purchasing power regardless of market fluctuations.

Additionally, the network has RUG as its native token. RUG is not a stablecoin, but it seeks to become an algorithmic reserve currency backed by other decentralized assets. Per the whitepaper, the long-term goal of the token is to optimize for stability and consistency so RUG can function as a global unit of account and medium of currency. Subsequently, the short-term goal is to develop a growth and wealth creation system.

Further, the RUG token seeks to function on two primary value accrual strategies for the participants, staking and bonding. Staking is the primary, passive, long-term strategy, where stakers stake the tokens on the RUG website to earn rebase rewards (rebase is a mechanism by which the staked RUG balance increases automatically). Bonding is the secondary, active, short-term strategy, where users bond the tokens by actually trading their assets to obtain bonds from the protocol.

Furthermore, staking and bonding generate some benefits. For example, for stakers, the main benefit comes from supply growth. Also, the benefits for bonders come from price consistency. 

History of R U Generous (RUG)

RUG was created from the DeFi community by anonymous team members.