RIVCoin: an alternative, integrated, CeFi/DeFi-Vaulted Cryptocurrency

Paper: arXiv 2401.05393

Authors: Roberto Rivera, Guido Rocco, Massimiliano Marzo, Enrico Talin, Ammar Elsabe

Abstract

This whitepaper introduces RIV Coin, a cryptocurrency that is fully stabilized by a diversified portfolio of invested reserves that are evaluated by professional independent third parties, and auditable and provable by the protocol. It is born and managed as a decentralized token, minted by a Decentralized Autonomous Organization (DAO). All wealthier Users are then accepting a redistribution of income, to the benefit of those who have purchased less tokens. In cooperative Game Theory, maximization of the economic benefit of the ecosystem is achieved when players’ incentives are perfectly aligned. The proposed model allows for alignment of incentives: decreasing the risk exposure by wealthier Users, but implicitly increasing that of smaller ones to a level perceived by them as still sustainable and never creating ultra-speculative positions. In other words, wealthier Users stabilize the risk associated with the market value of portfolios in which the reserves are invested in Centralized and Decentralized Finance, without falling into the bet scheme. Users indirectly benefit from the access to the rewards of sophisticated cryptocurrency portfolios hitherto precluded to them, as well as having access to a real redistribution of wealth, without this turning into a disadvantage for the wealthy User, who benefits from the greater stability created by the huge influx of smaller Users. Therefore, the progressive growth becomes additional value that tends to stabilize over time, optimizing RIV Coin on the systemic risk level.

Complexity vs Empirical Score

• Math Complexity: 3.5/10
• Empirical Rigor: 2.0/10
• Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: The whitepaper presents a novel conceptual framework for a reserve-backed cryptocurrency utilizing cooperative game theory ideas for wealth redistribution. However, it relies entirely on narrative promises without empirical backtesting, concrete mathematical proofs, or precise algorithmic specifications.

Research Flowchart

  flowchart TD
    A["Research Goal: Create a stabilized, risk-optimized cryptocurrency (RIV Coin) using cooperative game theory"] --> B["Inputs: CeFi/DeFi reserve assets & auditable third-party evaluations"]
    B --> C["DAO-Managed Minting & Algorithmic Stabilization Engine"]
    C --> D["Game-Theoretic Wealth Redistribution: High-volume holders absorb market risk for smaller holders"]
    D --> E["Outcomes: Systemic risk reduction, stabilized token value, and inclusive DeFi yield access"]

Cited References (29)

1. currency — link
2. Blockchain Scaling Using Rollups: A Comprehensive Survey (2022) — link
3. The latest gossip on BFT consensus (2019) — link
4. Tendermint: Consensus without mining (2014) — link
5. Scalable Zero Knowledge with No Trusted Setup (2019)
6. Raif (Luxembourg Reserved Alternative Investment Fund) (2022) — link
7. Regulation (EU) 22023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (2023) — link
8. Bitcoin: A Peer-to-Peer Electronic Cash System (2008) — link

0 of 29 cited works are in the corpus; resolved via arXiv source bundles, Semantic Scholar and OpenAlex. Corpus-wide: 2518 linked papers.