1. What is Reserve’s mission?
Reserve’s mission is to increase adoption of and access to sustainable, inflation proof, stable currency.
Reserve Rights (RSR)
2. What is the RSR token?
- RSR is the governance token for the Reserve Protocol ecosystem. The token can be staked on any RToken and provides stakers with the ability to participate in RToken governance, earn staking fees, and provide over-collateralization. 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 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?”
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.
- The remaining tokens belong to the Slow Wallet and Slower Wallet, controlled by Confusion Capital, who manages funding for Reserve Ecosystem initiatives. The Slower Wallet utilizes a hard-coded 4-week delay between initiating the 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 Furthermore, no more than 1% of the total supply of RSR (i.e. no more than 1 billion RSR tokens) can be withdrawn from the Slower Wallet within any 4-week period.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?
There are a number of RToken-specific factors which determine the returns for RSR stakers:
The yield generated by the underlying RToken collateral.
The percentage of yield allocated to RSR stakers for overcollateralization.
The amount of RSR currently staked on the RToken.
- The yield generated by the underlying RToken collateral.
- So 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 Reserve Register page for the respective RToken. See eUSD as an example. 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?
Good news, your new RSR is already in your wallet. The bad news is some wallets do not auto discover the new RSR so you have to take a few extra steps.
The RSR contract address changed in January 2022.
Old contract address is 0x8762db106B2c2A0bccB3A80d1Ed41273552616E8.
New contract address is 0x320623b8E4fF03373931769A31Fc52A4E78B5d70.
- Old contract address is 0x8762db106B2c2A0bccB3A80d1Ed41273552616E8.
For wallets such as Ledger or Metamask, manually add the new contract address to your wallet 0x320623b8E4fF03373931769A31Fc52A4E78B5d70 to view RSR.
Here are specific steps for wallets like Metamask and Ledger:
Open the Metamask extension in your browser.
Click on the three dots in the top right corner and click “View in explorer”.
View your assets on Etherscan and confirm the correct new address is listed: 0x320623b8E4fF03373931769A31Fc52A4E78B5d70.
If you have the old address, go to MetaMask, click “Import Token,” then go to the “custom token” tab and copy and paste the new address (see above).
The wallet should automatically recognize the new RSR token.
Click “Custom Token” and then “Import Tokens.”
The new RSR token balance will be represented by the colored RSR token logo.
- Open the Metamask extension in your browser.
When using ledger, the new RSR should update automatically. If this action doesn’t occur then:
Check on Etherscan using the “BalanceOf” option to ensure ownership
Add the new contract 0x320623b8E4fF03373931769A31Fc52A4E78B5d70 or purchase a small amount of RSR to resolve this.
- Check on Etherscan using the “BalanceOf” option to ensure ownership
- When using ledger, the new RSR should update automatically. If this action doesn’t occur then:
- If you are still having trouble with your wallet discovering new RSR and because there are so many different wallets such as Metamask, Coinbase Wallet, Zerion, Ledger, and Trezor, the best way to get specific instructions to add a new contact address to your wallet is to search for guides on your specific wallet. The process of adding new contract addresses is the same regardless of the token and hence is not RSR specific. The Reserve core team covers several wallets in this video.
7. How do I bridge between Ethereum and Base?
Bridge to Base
Bridge your RSR or RTokens to the Base network at https://app.reserve.org/#/bridge?chainId=1 after selecting the Ethereum network.
Verify the correct bridge page (https://app.reserve.org/#/bridge?chainId=1) and confirm that you are depositing to Base.
Send a small amount of ETH to Base for gas fees via app.reserve.org bridge or the Base Bridge.
Connect your wallet to app.reserve.org and specify the RSR or RToken amount to transfer.
Approve token spending for RSR or RToken and confirm the bridging transaction.
Wait for confirmation and find your RSR or RToken deposited to the same wallet on Base.
Keep in mind, due to Base being an optimistic rollup, it may take up to 7 days to withdraw from Base to the mainnet.
- Bridge your RSR or RTokens to the Base network at https://app.reserve.org/#/bridge?chainId=1 after selecting the Ethereum network.
Bridge to Ethereum
Go to the Reserve Register bridge: https://app.reserve.org/#/bridge?chainId=8453.
If you are bridging from Ethereum to Base make sure you have connected your wallet and you are on the ethereum mainnet.
Select the asset you want to bridge.
Make sure you have enough Eth token in your wallet to cover the gas transaction cost.
You can now bridge your funds from Ethereum to Base.
- After the transaction has been completed, you can now switch to the Base network in your wallet and see the funds that you bridged. Happy Bridging!
- Go to the Reserve Register bridge: https://app.reserve.org/#/bridge?chainId=8453.
8. What are the Reserve ecosystem token contract addresses?
|Reserve Rights (RSR)
|Electronic Dollar (eUSD)
|High Yield USD (hyUSD)
Reserve Register - Create, Mint, Redeem, Stake & Govern RTokens
9. What is Reserve Register?
- Reserve Register is a dAPP frontend enabling users to easily access the Reserve Protocol. The dApp 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?
- RTokens are permissionless and no coding experience is needed, meaning 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?
RTokens are available to explore, mint, stake and govern at Reserve Register. Use the dropdown box to select from a number of RTokens and learn about their mandate, asset backing, staking and governance.
There are two ways to mint an RToken
You must have all the assets that the RToken uses in your wallet. Taking for example eUSD, minters require saUSDC, saUSDT, cuUSDC and cuUSDT.
Alternatively, Reserve Register features "Zap Minting" which allows you to mint any existing RToken using just 1 asset. For example, you can mint eUSD with just USDC.
- Both functions can be found for your favorite RToken in the "Mint + Redeem" section in Reserve Register.
- You must have all the assets that the RToken uses in your wallet. Taking for example eUSD, minters require saUSDC, saUSDT, cuUSDC and cuUSDT.
12. I would like to deploy my own RToken, where can I start?
- Start by reviewing the Official Documentation, the Deployment Guide, and the YouTube Tutorial, where you can find everything related to the process of deploying your RToken. Then you can visit Reserve Register to deploy.
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 its github repository and ABC Labs will review it.
Reserve protocol operations
15. What blockchains are the Reserve Protocol available on?
- The Reserve Protocol is available on the Ethereum mainnet and Base L2. RTokens can be bridged to many popular blockchains.
16. Has the Reserve Protocol been audited?
Yes. Learn more about Reserve Protocol’s five audits below:
17. Are the Reserve Protocol smart contracts decentralized?
- Yes. The core contracts are only upgradable through 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?
- Smart contracts, depegs, counterparty and governance risks are all applicable to the Reserve Protocol. Read the Comprehensive Risk Mitigation at Reserve Protocol to dive deeper.
20. What are RToken collateral plugins and why are they important?
- Collateral plugins convert ERC20 tokens into assets that can back RTokens. Without them, native ERC20 tokens are incompatible to collateralize RTokens. Learn more about collateral plugins.
21. What assets are available to be used as collateral in RTokens?
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.
- Discover the currently available collateral options in Reserve Register deployment wizard “add to basket”. New collateral assets are constantly being integrated into the protocol.
22. Are RTokens algorithmically backed?
- No, RTokens are not algorithmically backed. RTokens are fully asset backed 1:1 with exogenous collateral (aka 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. Revisit question #12 to understand RToken setup parameters.
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?
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.
RToken anti-bank run mechanisms include verifiable reserves, predictable recovery, overcollateralization and proportional funds distribution, ALL ONCHAIN.
RTokens do not have the same recursive, negative feedback loops that UST/LUNA had since RTokens are not minted from any governance token. RTokens are 1:1 backed with exogenous assets with verifiable reserves onchain.
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 about autonomous self healing.
- 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.
- RTokens do not have the same recursive, negative feedback loops that UST/LUNA had since RTokens are not minted from any governance token. RTokens are 1:1 backed with exogenous assets with verifiable reserves onchain.
28. How does RToken governance work?
The RToken governance process follows a transparent and democratic approach. RSR stakers can propose, discuss, and vote on changes to the protocol.
Governor Alexios is the protocol's recommended governor implementation.
To participate in the Governance of a specific RToken go to 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.
- 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.
What are RTokens?
RToken is the generic name for a stablecoin that gets created on top of the Reserve Protocol. RTokens are fully asset-backed by any combination of ERC-20 tokens and can be protected against collateral default by Reserve Rights (RSR) staking. Each RToken is governed separately.
Anyone can create an RToken
In a similar way as how anyone can create a new trading pair on Uniswap, anyone can permissionlessly create a new Reserve stablecoin (RToken) by interacting with Reserve Protocol’s smart contracts. The protocol applies a system of factory smart contracts that allows anyone to deploy their own smart contract instance.
Creating an RToken can be done either by interacting directly with the Reserve Protocol’s smart contracts or any user interface that gets built on top of it. The first user interface for these smart contracts will be released by ABC Labs the company that's leading protocol development. Besides the creation of RTokens, this user interface will also support exploring usage and stats related to RTokens, RToken minting & redeeming, and RSR staking.
Non-compatible ERC20 assets
The following types of ERC20s are not supported to be used directly in an RToken system. These tokens should be be wrapped into a compatible ERC20 token to be used within the protocol. A concrete example is the use of Static ATokens for Aave V2.
- Rebasing Tokens that return yields by increasing the balances of users
- Tokens that take a "fee" on transfer
- Tokens that do not expose the decimals() in their interface. Decimals should always be between 1 and 18.
- ERC777 tokens which could allow reentrancy attacks
- Tokens with multiple entry points (multiple addresses)
- Tokens with multiple entry points (multiple addresses)
- Tokens that do not adhere to the ERC20 standard in general
Advanced RToken parameters
When deploying an RToken, the deployer has the ability to configure many different advanced parameters. The following list goes into detail about what these parameters do and some of the factors the deployer should keep in mind to set them.
As many of these parameters concern the Protocol Operations, we advise reading through that section of the documentation first—as it will give the deployer the necessary context to fully understand all parameters.
The trading delay defines how many seconds should pass after the basket has been changed before a trade can be opened.
A collateral asset can instantly default if one of the invariants of the underlying DeFi protocol breaks. If that would happen, and we would not apply a trading delay, the protocol would react instantly by opening an auction. This would give only auctionLength seconds for people to bid on the auction, making it very possible for the protocol to lose value due to slippage.
The trading delay parameter may only be needed in the early days - before we get to a point where there is a robust market of MEV searchers. We expect that this parameter can be set to zero later on (once a robust market of MEV searchers is established).
The Reserve Protocol includes a generic trading system which can be integrated with any type of trading mechanism, but will only have an implementation for Gnosis EasyAuctions at-launch.
The auction length determines how long auctions stay open for. The situations to keep in mind when determining this value are:
- If it is set too low, back-to-back auctions may not give arbitrageurs enough time to complete arbitrage loops that involve centralized exchanges. We don’t want capital-constrained traders to have to sit out every-other auction.
- If it is set too high, fewer auctions will fill and the protocol will take more time holding the asset being sold. This is because the price can swing more than maximum trade slippage in the unfavorable direction.
Backing buffer (%)
As collateral tokens appreciate, RTokens can be minted by the protocol whenever it gathers the correct ratios of all collateral tokens. This is the most efficient form of revenue capture, because it requires minimal trading of the excess collateral (and thus, a minimal spend on gas fees and trading slippage).
When the protocol is able to gather all the required parts of an RToken, these parts (collateral tokens) get sent to the RevenueTrader contract, where it performs an internal mint to create more RTokens. These new RTokens are then used as yield for both RToken holders and RSR stakers.
The backing buffer parameter is a percentage value that describes how much additional collateral tokens the protocol should hold on to before sending collateral tokens to the RevenueTraders. If this were set to “0”, then it’s possible (though unlikely) that collateral could “take turns” appreciating, causing the protocol to forward individual collateral tokens to the RevenueTraders and never assemble it into new RTokens.
Max trade slippage (%)
The maximum trade slippage is a percentage value that describes the maximum deviation from oracle prices that any trade that the protocol performs can clear at. Oracle prices have ranges of their own; the maximum trade slippage permits additional price movement beyond the worst-case oracle price.
Setting this percentage too high could cause the protocol to take high losses if auctions are illiquid.
Minimum trade volume
The minimum trade volume represents the smallest amount of value that is worth executing a trade for.
Setting this too high will result in auctions happening infrequently or the RToken taking a haircut when it cannot be sure it has enough staked RSR to succeed in rebalancing at par.
Setting this too low may allow griefers to delay important auctions. The variable should be set such that donations of size minTradeVolume would be worth delaying trading auctionLength seconds.
We expect auction bidders to pass-through any gas fees they pay during trading to the protocol. They are under competition, so those that do not will find themselves with less capital over time relative to those that do.
In order for the protocol not to take losses it’s important it knows that bidders will bid in the auction near market prices, which requires that gas prices are not significant relative to the volume of the auction.
Note: Every collateral in the basket should be a large enough portion of the basket that is worth trading at the configured minTradeVolume, even when we are only looking at 5% or 10% of its balance.
RToken max trade volume
This represents the maximum sized trade for any trade involving RToken, in terms of value.
It is important to remark that in addition to the RToken, each collateral plugin will also have its own max trade volume defined.
RToken supply throttles
In order to restrict the system to organic patterns of behavior, we maintain two supply throttles, one for net issuance and one for net redemption.
When a supply change occurs, a check is performed to ensure this does not move the supply more than an acceptable range over a period; a period is fixed to be an hour.
The throttling mechanism works as a battery, where, after a large issuance/redemption, the limit recharges linearly to the defined maximum at a defined speed of recharge.
Limits can be defined (for issuance and redemption) in rToken amounts and/or as a percentage of the RToken supply.
Issuance throttle amount
A quantity of RToken that serves as a lower-bound for how much net issuance to allow per hour. This quantity is defined in RToken amounts.
Must be at least 1 whole RToken. Can be set to a very high numer (e.g. 1e48) to effectively disable the issuance throttle.
Issuance throttle rate (%)
A fraction of the RToken supply that indicates how much net issuance to allow per hour.
Can even be set to 0, to solely rely on throttle amount.
Redemption throttle amount
A quantity of RToken that serves as a lower-bound for how much net redemption to allow per hour.
Defined in RToken amounts.
Must be at least 1 whole RToken. Can be set to a very high numer (e.g. 1e48) to effectively disable the redemption throttle.
Redemption throttle rate (%)
A fraction of the RToken supply that indicates how much net redemption to allow per hour.
Can be 0 to solely rely on the throttle amount.
Long freeze duration(s)
The number of seconds a long freeze lasts.
Long freezes can be disabled by removing all addresses associated to the role.
The unstaking delay is the number of seconds that all RSR unstakings must be delayed in order to account for stakers trying to frontrun defaults.
In the case of a collateral token default, RSR holders are not given a choice as to whether their RSR is used to cover the default, since selfish anonymous actors would often choose not to follow through. So, there must be a delay when withdrawing RSR from the staking contract.
In practice, whenever an RSR staker chooses to withdraw their RSR, they must submit a transaction, wait X amount of time, and then submit another transaction to complete the withdrawal. During the waiting period, their RSR continues to be subject to forfeiture in the case of a collateral token default, but stops earning its pro-rata share of the RToken’s revenue.
The goal of this delay is to make it so that at any point in time, staked RSR that has not had a withdrawal transaction initiated is at least X time away from being withdrawn.
Reward ratio (decimals)
The reward ratio is the percentage of the current reward amount that should be handed out per block.
Default value: 3209014700000 = a half life of 30 days at a period of 12s.
Mainnet reasonable range: 1e11 to 1e13
Use cases of RTokens
The RToken platform is a tool to aggregate relatively stable assets together to create basket-backed stablecoins. Our intention in the long-term is to facilitate the creation of an asset-backed currency that is independent of fiat monetary systems. We envision this becoming possible once enough asset types are tokenized.
We are laying the groundwork early, as not many assets are tokenized yet. Today, the main use-cases we see are (1) a more decentralized USD-backed coin, which reduces dependence on any one fiatcoin issuer, and (2) a single simple USD-based coin that packages the yield of DeFi protocols.
The main purpose of allowing and encouraging many RTokens is so that open exploration and competition can lead to the discovery of the best type of basket and governance system. There's a lot to explore, and it's better not to keep that under the control of the initial founding team. That said, we still anticipate a single dominant RToken emerging over time through that evolutionary process, and we think consolidation into one or two dominant options is a good thing, since simplicity and ubiquity are important for an asset to really be a currency.
We also can imagine fintech companies using the protocol to launch their own branded basket-backed stablecoins, though this wasn't the central intent of opening up the platform.
We don't expect lots of RTokens to be created right after protocol launch. Rather, we think that if one or two RTokens become large and known, that will inspire the creation of more over time.