# 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. 


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.resolv.xyz/litepaper/overview/why-use-resolv.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.