Reservoir provides a peg stability module that allows anyone to convert rUSD to USDC at parity and at no cost. rUSD issuance will be calibrated to avoid any liquidity crunch scenario. An important aspect of the rUSD peg is the assets that collateralize the stablecoin protocol. With a healthy mix of liquid DeFi assets and RWA collateral, the protocol provides a significant differentiating factor in higher yields and how uncorrelated and more stable it is to the digital asset market.

One of the core mechanisms that expand and contract the balance sheet is the variable rate on crypto backed loans. When demand for rUSD is high, the variable increases which cause a contraction as variable rate borrowers pay back their loans. The balance sheet will be relatively uncorrelated from the broader crypto market volatility as low-risk real world assets exists on the balance sheet.

Reservoir Stablecoin (rUSD) is a stablecoin that available to non-U.S. users and users in non-sanctioned countries. rUSD is built to be extremely scalable and efficient, paving the way for increased utility and cross chain use cases.

Key features:

• ERC-20 dollar-denominated stablecoin

• Backed by a balance sheet of both real world and digital assets

• rUSD can be minted, redeemed, and borrowed at any time

• Redeemable on a 1:1 basis for USDC or other dollar-denominated stablecoins as directed by governance

• rUSD is a USD pegged 1:1 stablecoin backed by a balance sheet of both real world and digital assets.