Proof of Reserves

Reservoir’s strategy is to generate a robust balance sheet for the protocol enabling rUSD to be the most scalable and used stablecoin in DeFi. The real-time balance sheet ensures the protocol solvency and establishes trust in that users can rely on the capital being available for redemptions and growth. Yield is generated through the onchain allocation of the reservoir balance sheet into real world assets, crypto backed lending market, and other DeFi protocols. The yield is then distributed to srUSD and trUSD holders creating a healthy flow of funds.

Assets

The asset selection and growth strategy at launch is foundational to the protocol’s success. Reservoir will partner with other protocols and firms to facilitate asset selection, growth, and risk management. With a focus on several categories of assets: DeFi yield, market making, money markets, crypto backed loans, and real world assets.

Digital Assets & DeFi Yield Strategies

Reservoir will integrate with approved DeFi protocols to provide a diverse set of on-chain yield. These will included liquidity pools, money markets, and yield protocols.

Real World Assets (RWA)

Reservoir will integrate with approved RWA curators to source assets based on demand from Reservoir governance. Governance will perform due diligence, onboard, and manage RWA collateral in an effective and efficient manner. RWA collateral will be allocated across a series of sub-categories of assets with various durations and exposure.

The current assets on the protocol balance sheet include:

Asset	Ticker	Description
Treasury Bills	ifBILL	Tokenized U.S. Treasury Bills provides users with exposure to short-term U.S. Treasury Bills. Underlying investments may include (i) direct purchases of U.S. Treasury Bills that have a remaining maturity under 12 months, and (ii) other instruments or investments providing short-term U.S. Treasury Bills, such as ETFs (e.g. BIL, SGOV, and SHV). Learn more here.
Hilbert Fund	ifHV1	Tokenized market neutral strategy by Hilbert Group, a Nasdaq-listed investment company, managing digital asset investment solutions for institutions. Learn more here.
Steakhouse Morpho Vault	steakUSDC	The Steakhouse USDC vault aims to optimize yields by lending USDC against blue chip crypto and real world asset (RWA) collateral markets, depending on market conditions. We call this the “dual engine.”
Reservoir Morpho Vault (coming soon)	TBD	The Reservoir rUSD vault powered by Steakhouse will enable rUSD minting on a variable and fixed rate basis against blue chip crypto and yield baring assets.

Liabilities

rUSD - Stablecoin

Reservoir mints rUSD to fund protocol assets. Users will be able to receive rUSD by exchanging USDC (and in future other approved stable assets) to gain access to protocol yield through trUSD or srUSD. Redemption of rUSD from the protocol into approved stable asset collateral will also be available on demand via the peg stability module (PSM).

srUSD - Savings

Users can mint srUSD with rUSD to earn yield from the protocol, which will be determined by Reservoir governance. Users can redeem srUSD for rUSD anytime up to the amount of liquidity available in the PSM.

trUSD - Term

Users can mint trUSD with rUSD to earn yield from the protocol, which will be determined by Reservoir governance. Users can mint trUSD at different fixed term maturities and receive quarterly coupons. Users will redeem trUSD for rUSD once the maturity is complete.

Equity

This portion of Reservoir’s balance sheet is the most secure capital owned by the protocol, also known as the "Protocol Reserve." Reservoir will launch with an initial protocol reserve. Future equity will be equal to the starting equity plus any retained earnings, protocol fees, net interest income, liquidation fees, governance token sales, etc. The equity will be under the control of governance token holders.

Reservoir will launch with a large capital commitment from its initial contributors which will form the initial reserve. This will be funded by a strategic distribution of the governance token. Establishing this founding capital base will allow Reservoir to scale quickly. The initial strategic contributors will be required to participate and remain active in the governance, growth, and development of Reservoir.