DOCS

About Reserve

1. What is Reserve’s mission?

  • Reserve’s mission is to increase adoption of and access to stable, long-lasting, inflation-resistant currency.


Reserve Rights (RSR)

2. What is the RSR token?

  1. Reserve Rights (RSR) is the governance token for the Reserve protocol ecosystem. RSR is an ERC-20 token common across all asset-backed currencies (“RTokens”) deployed via the Reserve protocol. RSR can be staked on a particular RToken, where it has two roles:

    1. Staked RSR overcollateralizes an RToken and may receive a portion of the RToken collateral’s revenue in exchange for being the first capital-at-risk in the case of collateral default.

    2. RSR stakers can participate in governance, proposing and voting on changes to the RToken’s configuration.

  2. Learn more about RSR.

3. Where can I stake RSR and what are the benefits and risks?

  • You can stake RSR by accessing the Reserve Register app and selecting an RToken for staking. RSR staking is necessary in order to participate in governance and earn rewards. Stakers also provide first-loss capital in the event a collateral asset fails in the RToken or a black swan event occurs — such as what happened during USDC’s depeg. Learn more about staking.

4. What are RSR tokenomics and the role of the “Slow(er) Wallets?”

  1. RSR has a fixed total supply of 100 billion tokens, out of which there are currently 50.6 billion in circulation, fully unlocked, including all early purchasers.

  2. The remaining tokens belong to the Slow Wallet and Slower Wallet, controlled by Confusion Capital, which manages funding for Reserve ecosystem initiatives. The Slower Wallet utilizes a hard-coded 4-week delay between initiating any withdrawal and completing it. Furthermore, no more than 1% of the total supply of RSR (i.e., no more than 1 billion RSR tokens) can be withdrawn from the Slower Wallet within any 4-week period.

5. How can I estimate my RSR staking returns?

  • Depending on the RToken you choose, you can get a higher or lower staking yield. The fastest way to understand RSR staking yields is by visiting the respective RToken’s page on the Reserve Register app. See eUSD as an example. Once you have already staked, you will notice rewards accrual on the Stake tab of your RToken. Read more about RSR staking.

6. I have old Reserve Rights tokens (RSR) that I can no longer transfer from my wallet. How can I exchange these for the new RSR tokens?

7. How do I bridge between Ethereum and Base?

  1. Bridge to Base

    1. Bridge your RSR or RTokens to the Base network at https://app.reserve.org/#/bridge?chainId=1 after selecting the Ethereum network.

    2. Verify the correct bridge page (https://app.reserve.org/#/bridge?chainId=1) and confirm that you are depositing to Base.

    3. Send a small amount of ETH to Base for gas fees via app.reserve.org bridge or the Base Bridge.

    4. Connect your wallet to app.reserve.org and specify the RSR or RToken amount to transfer.

    5. Approve token spending for RSR or RToken and confirm the bridging transaction.

    6. Wait for confirmation and find your RSR or RToken deposited to the same wallet on Base.

    7. Keep in mind: due to Base being an optimistic rollup, it may take up to 7 days to withdraw from Base to Ethereum mainnet.

  2. Bridge to Ethereum

    1. Go to the Reserve Register bridge: https://app.reserve.org/#/bridge?chainId=8453.

    2. If you are bridging from Base to Ethereum, make sure you have connected your wallet and you are on the Base network.

    3. Select the asset you want to bridge.

    4. Make sure you have enough Eth token in your wallet to cover the gas transaction cost.

    5. You can now bridge your funds from Base to Ethereum.

    6. After the transaction has been completed, you can now switch to the Ethereum network in your wallet and see the funds that you bridged. Happy Bridging!

8. What are the Reserve ecosystem token contract addresses?

  • The contract addresses for all RTokens are available on the Reserve Register app.

    Navigate to the RToken page you want, then find the contract address(es) featured in the header alongside the RToken’s name.

    The example below, of Electronic Dollar’s page on the Reserve Register app, displays three unique addresses (for eUSD on Ethereum mainnet, Base, and Arbitrum One) as well as quick actions — the double square icon allows for easy copy/pasting of an address, and the arrow icon opens a link to the address on its respective blockchain explorer.

Reserve Register: Create, Mint, Redeem, Stake & Govern RTokens


Reserve Register - Create, Mint, Redeem, Stake & Govern RTokens

9. What is Reserve Register?

  • Reserve Register is a decentralized app (“dapp”) frontend enabling easy access to the Reserve protocol. The app allows anyone to create, mint, or redeem RTokens in a permissionless manner. Reserve Register also allows RSR holders to stake their RSR onto their preferred RToken to participate in governance, earn yield, and provide first-loss capital in the event of a depeg event.

10. Who can create an RToken?

  • Because the Reserve protocol is permissionless and no coding experience is needed, anyone can create an RToken. DeFi developers, entrepreneurs, crypto protocols, apps, hedge funds, TradFi, and even rewards programs and video game/metaverse developers are all potential RToken deployers.

11. What RTokens are available to mint and how do I redeem an RToken?

  1. RTokens are available to explore, mint, stake and govern via the Reserve Register app. Use the dropdown box to select from a number of RTokens and learn about their mandate, asset-backing, staking, and governance.

  2. There are two ways to mint an RToken

    1. Option one: You must have all the assets that the RToken uses in your wallet. Taking for example eUSD, minting requires the minter’s wallet to have the necessary amounts of saEthUSDC, wcUSDCv3, cUSDT, and saUSDT.

    2. Option two: Reserve Register features “Zap minting” which allows you to mint any existing RToken using just a single asset. For example, you can mint eUSD by “zapping” into it with just USDC.

    3. Both functions can be found for your favorite RToken in the “Mint” section in Reserve Register.

12. I would like to deploy my own RToken, where can I start?

13. How can I know the possible yield performance of an RToken idea/design I am considering?

  • You can use the RToken Backtest tool to test the different possible collaterals for your RTokens and see which collateral assets produce the desired yield result.

14. I deployed my RToken and want it to be listed in Reserve Register, how can I do that ?

  • For your RToken to be listed in Reserve Register, you can create a pull request in this GitHub repository.


Reserve protocol operations

15. What blockchains are the Reserve Protocol available on?

  • The Reserve protocol is integrated natively with Ethereum, Base, and Arbitrum One. RTokens can be bridged to many popular blockchains.

16. Has the Reserve Protocol been audited?

17. Are the Reserve Protocol smart contracts decentralized?

  • Yes. The core contracts are only upgradable via governance proposals that get approved by RSR stakers. These proposals can either change a single parameter or upgrade a contract.

18. How are RTokens decentralized?

  • Collateral baskets are tokenized onchain, with the smart contract risk diversified over multiple protocols and assets. Each RToken is governed separately by RSR stakers and each can have an entirely different governance system.

19. What are Reserve Protocol and RToken risks?

20. What are RToken collateral plugins and why are they important?

  • Collateral plugins wrap ERC-20 tokens into assets that can back RTokens. Without them, native ERC-20 tokens are incompatible to collateralize RTokens. Learn more about collateral plugins.

21. What assets are available to be used as collateral in RTokens?

  1. Any asset with a suitable collateral plugin can be used as a collateral asset within an RToken. Collateral plugins help to price underlying assets and surface properties required for the RToken to ascertain its status. Learn more about developing collateral plugins.

  2. Discover the currently available collateral options in Reserve Register.. New collateral assets are constantly being integrated into the protocol, and ambitious deployers can even create custom collateral plugins.

22. Are RTokens algorithmically backed?

  • No, RTokens are not algorithmically backed. RTokens are fully asset backed 1:1 with exogenous collateral (i.e., external, unrelated assets) that, via smart contracts, are able to be redeemed at any time for the underlying assets.

23. How can an RToken deployer earn revenue?

  • Revenue distribution for RTokens is entirely flexible. From the revenue that is being accrued, any portion can be sent to any number of arbitrary Ethereum addresses, including the RToken deployer. Revenue share percentages are set when deploying the RToken and can only be changed by community governance.

24. Where does RToken yield (revenue sharing) come from?

  • Deposits in DeFi protocols such as Aave, Compound, Uniswap and Convex provide the depositor a receipt token that accrues yield. When these receipt tokens are used in collateral baskets for RTokens, the Reserve Protocol’s onchain operations harvest this yield to distribute to RToken stakeholders. This is performed 100% onchain. Learn more about RToken revenue handling.

25. How do RTokens harvest and reflect yield in price?

  • As underlying RToken assets appreciate or rewards are earned, more RTokens can either be minted or obtained through revenue auctions. These RTokens are subsequently sent to the Furnace and melted. As a result, RTokens become redeemable for more of its base currency unit. RTokens that accrue revenue to its holders do not rebase, which means that yield-bearing dollar-denominated RTokens (for example) resemble flatcoins, rather than stablecoins. That is, its price will continue to increase over time ($1.00 → $1.10 → $1.20, and so on). Learn more about RToken revenue handling.

26. How is revenue distributed to RToken holders and RSR stakers?

  • Once a threshold value has been met, RToken “revenue auctions” sell accrued rewards to buy RSR, which is subsequently distributed to RSR stakers. This process increases the redemption ratio of the staked RSR token (e.g. eusdRSR) relative to plain RSR. Learn more about RToken revenue handling.

27. How is the RToken peg maintained and what anti-bank run mechanisms are built-in?

  1. The RToken peg is maintained by always enabling permissionless minting and redemption for the underlying collateral onchain. This enables market participants to take advantage of an arbitrage opportunity if the price of the RToken in the secondary market deviates from the net asset value of the underlying collateral.

  2. RToken anti-bank run mechanisms include verifiable reserves, predictable recovery, overcollateralization, and proportional funds distribution, all of which are 100% onchain.

    1. RTokens do not have the same recursive, negative feedback loops that UST/LUNA had because RTokens are not minted from any governance token. RTokens are 1:1 backed with exogenous assets with verifiable reserves onchain.

    2. In the event one of the exogenous assets in the RToken basket drops by 10%, 20% or even 100%, the protocol would slash RSR stakers of the affected RToken and sell the failing collateral to buy the pre-programmed emergency collateral basket. Briefly the RToken would be below peg, yet the 100% redemption outcome would be verifiably predictable given the onchain overcollateralization. RTokens were battle-tested during the Silicon Valley Bank run that played a role in the March 9, 2023 depeg of USDC — learn more about RTokens’ autonomous self healing.

    3. Should there be a case where RToken collateral defaults and the RSR overcollateralization pool is spent with net collateral at < 100% of target price, the affected RToken holders receive proportional distribution rather than first-come-first-served exit - this eliminates the bad debt without a hyperinflation event.

28. How does RToken governance work?

  1. The governance process follows a transparent and democratic approach. RSR stakers can propose, discuss, and vote on changes to the RToken(s) they’re staked on.

  2. Governor Anastasius is the protocol's recommended governor implementation.

  3. To participate in the governance of a specific RToken, go to the Reserve Register. Select the RToken you wish to govern and select the Governance section. You will be able to view all the governance proposals that have been submitted for the RToken. If there is any active proposal, you can select it and vote for or against it.

  4. Only those staking RSR on a specific RToken receive governance votes for that RToken, so ensure that you have done so if you wish to vote.