What is Reserve Rights?
Reserve Rights (RSR) is the utility and governance token of the Reserve Protocol, a decentralised platform that allows the creation of asset-backed stablecoins known as RTokens, and programmable portfolios called Decentralised Token Folios (DTFs) — similar to on-chain ETFs. RSR plays a core role in stabilising RTokens, enabling governance, and distributing revenue to stakers. The protocol is designed to offer resilient, inflation-resistant digital money and accessible financial products globally.
How does Reserve Rights work?
Reserve Protocol operates on Ethereum and compatible Layer 2 networks:
- Blockchain infrastructure: Built on Ethereum, leveraging its Proof of Stake consensus for base-layer security. Reserve adds protocol-level features for stablecoin minting, collateral management, and governance.
- Collateral system: RTokens are over-collateralised by diversified baskets of stablecoins and yield-bearing assets, designed to maintain a stable $1 value.
- RSR staking: RSR holders can stake tokens to back specific RTokens, earning a share of protocol fees and acting as a safeguard against collateral shortfalls.
- Governance: RSR enables on-chain voting for decisions on collateral composition, yield strategies, and risk parameters.
Key mechanics include:
- Arbitrage-based peg defence: When RTokens deviate from $1, mechanisms allow arbitrage using RSR to restore the peg.
- Dynamic rebalancing: Protocol algorithms adjust basket compositions for yield optimisation and risk management.
What are the potential use cases for Reserve Rights?
Reserve Protocol and the RSR token support a wide range of decentralised financial applications:
- Stablecoin minting: Users can create RTokens that are fully collateralised and can represent diversified crypto assets.
- Yield generation: Stakers earn revenue from RTokens used in lending, trading, and DeFi integrations.
- Decentralised payments: RTokens can be used for global payments and savings, particularly in regions facing economic instability.
- On-chain asset management: Anyone can create permissionless DTFs that track sectors, strategies, or asset classes.
Applicable sectors include:
- DeFi: Offering stable, yield-generating assets and programmable portfolios.
- Payments and remittances: Enabling low-cost, censorship-resistant transactions.
- Digital asset management: Tokenised indexes for individuals and institutions.
Notable integrations and features:
- Compatibility with liquidity platforms like Curve and Convex for yield generation.
- Security audits from established firms to support production-grade deployment.
What is the history of Reserve Rights?
Reserve Protocol was launched to address hyperinflation and monetary instability by offering decentralised, asset-backed money. It was founded by a team of developers and entrepreneurs focused on financial inclusion and stable currency alternatives.
Key developments include:
- The launch of the initial stablecoin RSV and early exchange listings.
- Evolution into a full platform supporting RTokens and DTFs with decentralised governance.
- The introduction of tools for permissionless index creation and cross-chain functionality.
Reserve has grown from a single stablecoin project into a comprehensive protocol for building programmable financial products. RSR remains central to this ecosystem, powering governance, stability, and incentive alignment across the protocol’s decentralised architecture.