Reserve (RSV)

RSV is backed by a basket of on-chain collateral assets, held by the Reserve Vault smart contract. This basket is comprised of equal parts TUSD, PAX, and USDC.

Key Features

1. RSV Issuance: interact directly with the protocol to lock up collateral and issue new RSV.
2. RSV Redemption: trade in your RSV for collateral tokens.
3. Vault Rebalancing: holders can submit proposals to the Reserve Manager smart contract to rebalance the composition of the collateral in the vault.

Issuance + Redemption

In both cases:

1. Approves our system to spend some quantity of their funds, using the standard ERC20 interface function.
2. Calls the “Issue” or “Redeem” function in our smart contracts.
3. During Issuance, USDC + TUSD + PAX is collected from the user’s wallet and a corresponding quantity of RSV is minted to them.
4. During Redemption, it happens in reverse: RSV is collected and burnt and the user is compensated with USDC + TUSD + PAX.

Sources:

• https://reserve.org/protocol/rsv/
• https://defillama.com/peggedasset/reserve