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We want money that doesn’t inflate like USD, but isn’t volatile like Bitcoin.

We believe money should be an index of the world’s assets:... Read more stocks, bonds, gold, real estate, and more. But we aren’t building that currency directly.

We build the Reserve protocol, which lets anyone create a new currency backed 1:1 by a collection of tokenized assets.

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Today, the ecosystem is focused on helping individuals, treasuries, and DAOs fight inflation

on Ethereum, Base, and Arbitrum

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TVL in Reserve

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First-loss capital

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Preserve your runway using...

Safe Assets with
Deep Liquidity

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*30-day average APY offered by the underlying protocols. This rate is variable.

Every asset deployed on the Reserve protocol guarantees

1:1 redemption
Redeem for underlying collateral onchain or swap directly into USDC / ETH
No lock-ups
Earn yield without worrying about long lock up periods
No fees
Never any fees when minting or redeeming for collateral

*30-day average APY offered by the underlying protocols. This rate is variable.

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A novel approach to money...

An RToken Primer

Reserve RTokens Reserve RTokens Mint Reserve RToken governance Reserve RToken Overcollateralization Reserve RToken Revenue Sharing Reserve RToken Collateral

What are RTokens?

Stable asset-backed currencies launched on the Reserve protocol are called “RTokens”.

RTokens are initialized by deploying a configuration to Ethereum where anyone can then create RTokens by depositing a basket of collateral in the form of ERC20 tokens. RTokens are fully redeemable for the underlying collateral at any time.

Reliable, permissionless access

Mint and redeem onchain 24/7.

RTokens are redeemable 1:1 for the assets that back them. Their collateral assets are held by smart contracts, which don’t take vacations. You don’t need to wait until Monday or worry about bank holidays, everything is available 24/7, when you need it.

Many useful collateral assets are, however, backed by off-chain assets and come with their own caveats. But the RTokens themselves and all of their onchain collateral are visible at all times, so no proof of reserves is needed on the RToken layer.

RToken governance

RTokens can be governed however their creators choose, but the Reserve protocol includes a default token-voting-based option called Governor Anastasius.

Governance defines the asset basket and an ordered list of emergency collateral that can be adopted in the case of a primary collateral asset defaulting. When governance updates a basket or in the case of a default, the protocol makes onchain trades to reach the new basket composition.

Overcollateralization
for greater stability

RTokens are designed to be overcollateralized, which means that if any of their collateral tokens default, there's meant to be a pool of value to preserve the expected value for RToken holders. RToken overcollateralization is provided by the Reserve Rights (RSR) holders who chose to stake on each RToken, and the amount varies.

An RToken’s collateral can generate revenue, and it can direct a portion of that revenue to RSR stakers. This can incentivize RSR holders to stake, and thus provide overcollateralization.

Programmable revenue sharing

Governance determines how the protocol distributes revenue generated from the underlying collateral between RToken holders, RSR stakers, and any arbitrary Ethereum contract or address.

Some RToken governors may choose to send most of the revenue to RToken holders, growing the RToken’s value and incentivizing a higher RToken market cap. Other RToken governors may choose to pay RSR stakers more in order to incentivize more overcollateralization.

Even more creative revenue sharing might include chosen charities, contributing organizations, platforms that support use of the RToken, or entrepreneurs who launched the token initially. The system is built with flexibility in mind.

Collateral default and self-healing

In the rare case that an RToken's collateral defaults, staked RSR can be seized in a process that is entirely mechanistic based on oracle price-feeds, which does not depend on any governance votes or human choices.

Since RSR stakers take the first loss and are typically the decision makers for what backs an RToken, their incentives are typically aligned with RToken holders to choose safe backing.

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There’s a lot to know

FAQs

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RTokens generate revenue from yield bearing tokenized assets such as stablecoins in lending protocols or liquid staking solutions like Rocket Pool and Lido.

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In the rare case that an RToken's collateral defaults, first-loss capital can be seized in a process that is entirely mechanistic based on oracle price-feeds, which does not depend on any governance votes or human choices.

Case study: March 2023, USDC Depeg & eUSD

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Each RTokens is governed independently by Reserve Rights (RSR) stakers in a fully decentralized manner.

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Whenever you want! RTokens allow fully permissionless minting and redeeming onchain.

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One risk of using or staking on RTokens is the chance of a bug in the smart contracts that would allow an attacker to steal the funds. Other risks include governance attacks and exploits in the front-end software you use to access the protocol. You can learn more here.

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The Reserve Protocol has undergone a rigorous combination of comprehensive system testing and independently-conducted audits. In addition, an ABC Labs controlled 2-3 multisig and a governance timelock hold the roles of pauser/freezer, and can pause, freeze or veto malicious governance votes on an RToken in case of emergency.

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All of our documentation can be found here.

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Join the Reserve Discord to get help with RTokens or contribute to the ecosystem.

If you are an Institutions or a DAO, please reach out to ecosystem@reserve.org for support.