With DTFs, anyone can deploy a new basket of tokens, and anyone with an internet connection can mint or redeem them. This open model empowers smaller innovators and even individuals to launch curated folios around new ideas—or mirror the portfolios of experienced market participants—on a global scale. This is the reason why the Reserve community intends to enable and encourage the creation of asset-backed currencies that aren’t pegged to the US dollar, but to the aggregate value of the global economy. By collateralizing currencies with broad, transparent portfolios (including stocks, bonds, gold, real estate, and more), Reserve aims to enable decentralized, inflation-resistant currency capable of scaling globally. Staked RSR can be seized by the protocol in the event of a collateral token default, in order to cover losses for DTF holders.
Besides the creation of RTokens, this user interface will also support exploring usage and stats related to RTokens, RToken minting & redeeming, and RSR staking. You can think of Yield DTFs like DeFi yield harvesting mechanisms with built-in overcollateralization, and Index DTFs like streamlined, decentralized ETFs built for scale. While Yield DTFs are engineered for robust, diversified yield strategies, Index DTFs are optimized for passive diversification, making it easy to launch and maintain broad market baskets with minimal overhead. For DTFs that enable revenue sharing, vote-lockers also earn a pro-rata slice of the DTF’s minting and TVL fees, creating a reward stream that is independent of the staking yields available in Yield DTFs.
- Reserve Rights (RSR) has a fixed total supply of 100 billion tokens, out of which there are currently 53.5b in circulation.
- Platform fees are currently used to buy RSR on the open market and burn it, permanently removing it from circulation.
- When deploying an RToken, the deployer has the ability to configure many different advanced parameters.
- DTFs offer streamlined exposure to specific themes or sectors that could shape crypto’s next wave of growth — like DeFi, gaming, or AI.
- While each DTF can have its own customized governance system, we expect most DTFs to use our default configuration where the amount of RSR tokens a participant stakes or locks serves as the voting weight.
Future RSR emissions are set on a deterministic schedule which emulates the emissions curve of Bitcoin. For more details on this decision, check out this blog post, or visit CoinMarketCap’s Token Unlock page to see the exact RSR unlock timeline. The Slow Wallet is a locked wallet controlled by the Reserve project team, used to fund DTF adoption initiatives. It has a hard-coded 4-week delay after initiating each withdrawal transaction on the blockchain. For Yield DTFs, Governor Anastasius is the protocol’s recommended governor implementation, which is detailed next.
These tokens should be be wrapped into a compatible ERC20 token to be used within the protocol. Taking a look at the history of currency reveals that, whenever a major world empire gives way to thenext one, the value of the currency that the empire issued tumbles. Besides this phenomenon havinghappened with currencies such as The Dutch Guilder & The British Pound, recent speculation by Ray Daliostates that “the US dollar is not destined to remain the world’s reserve currency”. So far the protocol has been implemented in Solidity and deployed on Ethereum, Base, and Arbitrum.
– Which DTFs are available to mint/redeem? How?
- Today the protocol is best used for bundling DeFi assets together to create yield-bearing USD stablecoins and other composite assets.
- Taking a look at the history of currency reveals that, whenever a major world empire gives way to thenext one, the value of the currency that the empire issued tumbles.
- As part of these changes, Confusion Capital is a new entity who will manage funding for the Reserve Ecosystem, including Best Friend Finance, and ABC Labs (who focuses on core protocol development).
- As a general rule, RSR stakers will receive more revenue as the market cap of the DTF they stake on increases.
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. 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.
Decentralized Token Folios (DTFs)
As crypto markets continue to evolve, decentralized token folios stand poised to become a key investment tool for digital asset markets, whatever form they may take. Yield DTFs autonomously manage yield from their underlying collateral, automatically harvesting and distributing earnings according to governance-defined rules. They also incorporate How to Invest in Index Funds a protective layer of overcollateralization provided by staked Reserve Rights (RSR) tokens, offering enhanced security against potential losses.
– Where can I find Reserve ecosystem contract addresses?
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. With a sufficiently diversified basket of assets backing this new currency, its value might be able tofollow the global GDP, which, during the world financial crisis of 2008 only dipped ~2%. We think it’d be really neat if there was a stable currency that kept its value with no inflation forcenturies.
– How is revenue distributed to DTF holders, RSR stakers, & vote-lockers?
DTFs improve on this model with real-time, onchain transparency that offers a clear view into each underlying component at any moment. This immediate transparency fosters trust, since anyone can verify how tokens are allocated, how yield is generated, and how frequently DTF rebalancing occurs. When deploying an RToken, the deployer has the ability to configure many different advanced parameters.
7 permissionless minting, redeeming and trading
It follows a delegation system where RSR holders can delegate their voting power to other addresses. This enables efficient participation in the decision-making process and increases voter turnout. DTFs offer streamlined exposure to specific themes or sectors that could shape crypto’s next wave of growth — like DeFi, gaming, or AI. Reserve Rights (RSR) has a fixed total supply of 100 billion tokens, out of which there are currently 53.5b in circulation. The Reserve team has deployed a recommended governance system for Yield DTFs (Reserve Governor Anastasius) that will be suggested to DTF deployers by default.
The Reserve Protocol lets anyone deploy a token that is issuable and redeemable for a basket of any other tokens. This is necessary to prevent stakers from withdrawing and re-depositing over and over in order to subvert the withdrawal delay mechanism. It is possible for users to cancel unstakings at any time to resume staking and earning rewards. When RSR is staked on a DTF, it is deposited into a staking contract specific to that DTF, and the staker receives a corresponding ERC-20 token, representing their staked RSR position on that particular DTF. This token is transferrable and fungible with other staked RSR balances for that DTF, so you can send any portion of the staked position to someone else or trade it, and the new holder can un-stake it if they choose to. Traditional financial products often update their holdings on a daily or monthly schedule.
Un-staking RSR comes with a delay, which is configurable by governance, and predicted to usually be between about 7 and 30 days. This delay is necessary so that in the event of a default, the staked RSR will remain in the staking contract for long enough to allow the Yield DTF to seize any RSR it needs to cover losses. In legacy systems, only a handful of large entities can create new ETF products, and share creation/redemption is often restricted to designated participants.
All that being said, we are extremely excited to start working on this part of the project together withthe Reserve community and anyone else willing to join in. Index DTFs focus on efficiently managing diversified indexes with handfuls to hundreds of tokens. Their lightweight design eliminates the need for complex collateral management, enabling the creation of large, transparent indexes with broad market exposure and efficient, decentralized governance. The protocol stores revenue for a particular Yield DTF in different ERC20s (including DTFs). When staking rewards are distributed, it market-buys RSR via auctions with these ERC20s and deposits it into the staking contract to distribute the rewards to RSR stakers.
For this reason, the Reserve protocol is entirely permissionless, allowing anyone to deploy a DTF with their preferred collateral basket, governance system, and revenue distribution. Today the protocol is best used for bundling DeFi assets together to create yield-bearing USD stablecoins and other composite assets. Our approach is to bundle stocks, bonds, gold, real estate, and more into an index, and use that as money.
In return for providing this overcollateralization, RSR stakers can expect to receive a portion of the revenue from the specific DTF that they stake on. As a general rule, RSR stakers will receive more revenue as the market cap of the DTF they stake on increases. The way we think this cryptocurrency should be built is by backing it with a diverse andwell-structured basket of many different tokenized assets that will hold its overall value for a longtime. These could include all kinds of precious metals, commodities, debt & equities. We believe that open exploration and competition can surface the most effective basket compositions and governance models—for both resilient money and diversified investment vehicles.