# Why use Resolv?

As a stablecoin architecture, Resolv has a number of benefits: 

**Capital Protection.** USR is backed by liquid, prime assets. Its collateral coverage ratio is one of the best in class. View the live USR collateralization ratio in the [dashboard](https://app.resolv.xyz/collateral-pool)

**Broad exposure to crypto yields.** Resolv’s modular architecture enables allocation to diverse markets for stable, risk-managed returns.

**Independence from fiat currencies.** There is no $1 in the world directly attached to Resolv tokens. The only link is a claim to the exchange (in case it is a CEX), efficiently managed in terms of counterparty risk.

**Capital efficiency.** Minting $1 worth of USR or RLP requires $1 worth of assets (net of minting costs). No need to overcollateralize stablecoin position.

**Peg.** USR can be redeemed at all times for $1 worth of other USD stablecoins, so any deviation from the peg can be promptly pulled to zero by arbitrage activities.

**Insurance Layer.** USR is protected by RLP, a scalable insurance layer. 

**Profitable business model.** The treasury allocates inventory into staking and earns additional funding fees on futures positions.