{"id":"reservoir-rusd","title":"Reservoir rUSD","content":"**Reservoir rUSD** (rUSD) is a decentralized [stablecoin](https://iq.wiki/wiki/stablecoin) pegged to the United States dollar. It is the native [stablecoin](https://iq.wiki/wiki/stablecoin) of the [Reservoir](https://iq.wiki/wiki/reservoir) protocol, an ecosystem designed to support [decentralized finance](https://iq.wiki/wiki/defi) (DeFi) applications through a multi-collateral backing mechanism that includes both digital and real-world assets. [\\[1\\]](#cite-id-BSlXr9dpJ2) [\\[2\\]](#cite-id-Myqq3zUH7b)\n\n## Overview\n\n[Reservoir](https://iq.wiki/wiki/reservoir) rUSD is an [ERC-20](https://iq.wiki/wiki/erc-20) token that operates primarily on the [Ethereum](https://iq.wiki/wiki/ethereum) [blockchain](https://iq.wiki/wiki/blockchain), with design considerations for cross-chain compatibility. The project's stated goal is to create a scalable, efficient, and yield-bearing [stablecoin](https://iq.wiki/wiki/stablecoin) to facilitate the onboarding and cross-collateralization of a large volume of assets into the DeFi space. The stablecoin is backed by a diversified balance sheet of assets, which the protocol claims are of higher quality and less volatile than those used by comparable stablecoin protocols. This backing includes a combination of established digital assets and tokenized [Real World Assets](https://iq.wiki/wiki/real-world-assets-rwas) (RWAs). [\\[3\\]](#cite-id-ByQAOp3Dji) [\\[1\\]](#cite-id-BSlXr9dpJ2)\n\nThe protocol aims to provide consistent yields for its users in various market conditions by generating returns from its underlying asset portfolio. As of October 18, 2025, the [Reservoir](https://iq.wiki/wiki/reservoir) protocol reported a [Total Value Locked](https://iq.wiki/wiki/tvl) (TVL) of $526 million. Market data from October 20, 2025, indicated a circulating supply of approximately 81.99 million rUSD and a total [market capitalization](https://iq.wiki/wiki/market-capitalization) of nearly $81.9 million, ranking it #566 among [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency). The protocol and its [stablecoin](https://iq.wiki/wiki/stablecoin) are available to non-U.S. users and individuals in countries not under sanctions. [\\[4\\]](#cite-id-hXrS2lYFrC) [\\[2\\]](#cite-id-Myqq3zUH7b)\n\n## History\n\nOn September 29, 2025, the [Reservoir](https://iq.wiki/wiki/reservoir) protocol announced a strategic integration with World Liberty Financial. This partnership enabled the native minting and redemption of rUSD using World Liberty Financial's [USD1](https://iq.wiki/wiki/usd1) [stablecoin](https://iq.wiki/wiki/stablecoin). The collaboration, promoted with the portmanteau \"LibertyVoir,\" positioned Reservoir as one of the first stablecoin protocols to offer this functionality for USD1 holders. The integration allows users to perform 1:1 swaps between rUSD and USD1 without [slippage](https://iq.wiki/wiki/slippage) directly within the Reservoir application across multiple [blockchains](https://iq.wiki/wiki/blockchain). [\\[5\\]](#cite-id-6ThaunpkWh)\n\nIn an official statement regarding the partnership, the [Reservoir](https://iq.wiki/wiki/reservoir) team announced:\n\n> \"We are thrilled to announce an integration with @worldlibertyfi to offer users native minting and redeeming of rUSD with \\[USD1] - (https://iq.wiki/wiki/usd1).\" [\\[5\\]](#cite-id-6ThaunpkWh)\n\n## Technology\n\nThe [Reservoir](https://iq.wiki/wiki/reservoir) protocol is built on a modular architecture composed of several key smart contract components that manage its operations and maintain the stability of rUSD. [\\[3\\]](#cite-id-ByQAOp3Dji)\n\n### Protocol Architecture\n\nThe core of the [Reservoir](https://iq.wiki/wiki/reservoir) protocol consists of several interconnected modules:\n\n* **Credit Enforcer:** This module manages the rules and enforcement of credit, borrowing, and collateralization within the ecosystem.\n* **Peg Stability Module (PSM):** A central component designed specifically to maintain the 1:1 peg of rUSD to the US dollar through efficient [arbitrage](https://iq.wiki/wiki/arbitrage) and liquidity management.\n* **Term Issuer:** This module handles the creation, management, and redemption of trUSD, the protocol's term-based yield product.\n* **Savings Module:** This component manages the protocol's liquid yield products, [srUSD](https://iq.wiki/wiki/reservoir-srusd) and wsrUSD, and oversees the distribution of savings yield to holders.\n* **Asset Adapters:** These are specialized smart contracts that allow the protocol to integrate and manage a diverse range of [collateral](https://iq.wiki/wiki/collateral) types, including various digital assets and RWAs.\n\nThese modules work in concert to support the protocol's functions, from [stablecoin](https://iq.wiki/wiki/stablecoin) issuance to yield generation. [\\[3\\]](#cite-id-ByQAOp3Dji)\n\n### Stability Mechanism\n\n[Reservoir](https://iq.wiki/wiki/reservoir) rUSD employs a hybrid model to maintain its peg to the US dollar. The primary mechanism is the Peg Stability Module (PSM), which facilitates 1:1 swaps between rUSD and other approved, established stablecoins. Users can mint new rUSD by depositing [collateral](https://iq.wiki/wiki/collateral) such as [USDC](https://iq.wiki/wiki/usdc), [USDT](https://iq.wiki/wiki/tether), and [USD1](https://iq.wiki/wiki/usd1), and can redeem rUSD for these assets at a 1:1 ratio at any time. This direct [arbitrage](https://iq.wiki/wiki/arbitrage) opportunity is designed to keep the market price of rUSD closely aligned with one dollar. [\\[1\\]](#cite-id-BSlXr9dpJ2) [\\[5\\]](#cite-id-6ThaunpkWh)\n\nIn addition to the PSM, the protocol is described as using an algorithmic, elastic supply model. This system automatically expands or contracts the circulating supply of rUSD in response to market demand, working alongside the reserve assets to provide stability during periods of market volatility. The entire system is managed by smart contracts to ensure transparent and secure operations. [\\[2\\]](#cite-id-Myqq3zUH7b)\n\n### Technical Infrastructure\n\nrUSD is an [ERC-20](https://iq.wiki/wiki/erc-20) token built on a [blockchain](https://iq.wiki/wiki/blockchain) infrastructure designed for security, scalability, and interoperability. While its primary network is [Ethereum](https://iq.wiki/wiki/ethereum), the protocol is designed for cross-chain compatibility to foster wider adoption across different [blockchain](https://iq.wiki/wiki/blockchain) ecosystems. The system utilizes an efficient [consensus mechanism](https://iq.wiki/wiki/consensus-mechanism) to ensure fast transaction confirmations. [\\[2\\]](#cite-id-Myqq3zUH7b)\n\n## Tokenomics\n\nThe [Reservoir](https://iq.wiki/wiki/reservoir) ecosystem includes several tokens that serve different functions, from stability and savings to governance.\n\n### rUSD\n\nrUSD is the central [stablecoin](https://iq.wiki/wiki/stablecoin) of the protocol, designed for use as a medium of exchange, a store of value, and [collateral](https://iq.wiki/wiki/collateral) within DeFi. It can be minted, redeemed, and borrowed through the [Reservoir](https://iq.wiki/wiki/reservoir) protocol. [\\[1\\]](#cite-id-BSlXr9dpJ2)\n\n### Associated Tokens\n\nThe protocol offers several derivative tokens that provide yield-bearing opportunities for rUSD holders:\n\n* **srUSD (Savings rUSD):** A liquid, yield-bearing token that represents rUSD deposited into the protocol's savings module. As of October 18, 2025, the APY for srUSD was reported at 7.75%.\n* **wsrUSD (Wrapped Savings rUSD):** A wrapped version of srUSD, designed to enhance its compatibility with other DeFi protocols and platforms.\n* **trUSD (Term rUSD):** A term-based yielding asset that allows users to lock their rUSD for a fixed period in exchange for a specified yield.\n\nThese tokens allow users to earn passive income on their [stablecoin](https://iq.wiki/wiki/stablecoin) holdings directly within the [Reservoir](https://iq.wiki/wiki/reservoir) ecosystem. [\\[4\\]](#cite-id-hXrS2lYFrC) [\\[3\\]](#cite-id-ByQAOp3Dji)\n\n### DAM Token\n\nThe [Reservoir](https://iq.wiki/wiki/reservoir) protocol is associated with the DAM token, which is suggested to function as a governance or [utility token](https://iq.wiki/wiki/utility-token). The protocol's documentation mentions a \"DAM [Airdrop](https://iq.wiki/wiki/airdrop),\" indicating a distribution method aimed at fostering community engagement and decentralization. [\\[3\\]](#cite-id-ByQAOp3Dji)\n\n### Initial Distribution\n\nThe launch of [Reservoir](https://iq.wiki/wiki/reservoir) rUSD included a strategic token distribution plan intended to promote community growth, ensure fair access, and establish liquidity. The allocation was as follows:\n\n* **Community Airdrops & Early Adopters:** 30%\n* **Ecosystem Growth Fund:** 25%\n* **Liquidity Mining Programs:** 20%\n* **Development Team:** 15% (subject to a 3-year vesting schedule)\n* **Stability Reserve:** 10%\n\nThis distribution model was designed to decentralize control and incentivize participation from various ecosystem stakeholders. [\\[2\\]](#cite-id-Myqq3zUH7b)\n\n## Ecosystem and Use Cases\n\n[Reservoir](https://iq.wiki/wiki/reservoir) rUSD is designed to be a foundational component of the broader DeFi landscape, with several primary use cases. The protocol features [permissionless](https://iq.wiki/wiki/permissionless) lending markets where rUSD can be supplied or borrowed. [\\[3\\]](#cite-id-ByQAOp3Dji)\n\nIts primary functions include:\n\n* **Stable Medium of Exchange:** Used by traders and investors to hedge against the price volatility of other cryptocurrencies.\n* **DeFi Collateral:** Serves as [collateral](https://iq.wiki/wiki/collateral) for borrowing and lending activities on various DeFi protocols.\n* **Yield Farming and Staking:** Holders can use rUSD in liquidity pools for [yield farming](https://iq.wiki/wiki/yield-farming) or stake it in designated pools to earn rewards. [Staking](https://iq.wiki/wiki/staking) periods are reported to range from 30 days to one year, with longer commitments offering higher APYs.\n* **Store of Value:** Aims to preserve purchasing power by maintaining its peg to the US dollar.\n* **Payments:** Functions as a payment solution for e-commerce and cross-border transactions due to its stable value and fast settlement times.\n\nUsers can also participate in [liquidity mining](https://iq.wiki/wiki/liquidity-mining) by providing rUSD liquidity on [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) (DEXs) to earn rewards and improve the token's market efficiency. [\\[2\\]](#cite-id-Myqq3zUH7b)\n\n## Governance\n\nThe [Reservoir](https://iq.wiki/wiki/reservoir) protocol operates under a community-driven, decentralized governance model. Holders of its native token are empowered to participate in key decisions that affect the protocol's future. This includes voting on proposals related to protocol upgrades, adjustments to system parameters like [collateral](https://iq.wiki/wiki/collateral) types or fees, and the allocation of funds from the ecosystem treasury. Community members can submit improvement proposals, allowing the protocol to evolve based on the consensus of its users. [\\[2\\]](#cite-id-Myqq3zUH7b)\n\n## Partnerships\n\n### World Liberty Financial\n\nIn September 2025, [Reservoir](https://iq.wiki/wiki/reservoir) announced an integration with World Liberty Financial to incorporate the [USD1](https://iq.wiki/wiki/usd1) [stablecoin](https://iq.wiki/wiki/stablecoin) as a native [collateral](https://iq.wiki/wiki/collateral) asset. This partnership allows holders of USD1 to mint and redeem rUSD on a 1:1 basis directly through the Reservoir application. The feature is supported across multiple chains and is designed to be executed without [slippage](https://iq.wiki/wiki/slippage), enhancing the liquidity and accessibility of rUSD. [\\[5\\]](#cite-id-6ThaunpkWh)\n\n## Security and Transparency\n\nThe [Reservoir](https://iq.wiki/wiki/reservoir) protocol emphasizes transparency and security through several features. The official documentation includes a dedicated section for \"Proof of Reserves,\" indicating a mechanism for users to verify the assets backing the rUSD supply on-chain. The project also states that its smart contracts have undergone security audits by third-party firms to identify and mitigate potential vulnerabilities. Official smart contract addresses are made publicly available in the project's documentation to promote transparency. [\\[1\\]](#cite-id-BSlXr9dpJ2)","summary":"Reservoir rUSD is a decentralized, multi-collateral stablecoin on Ethereum pegged to the US dollar, backed by digital assets and RWAs, and featuring a Peg Stability Module and yield-bearing products like srUSD.","images":[{"id":"QmenCGgTRrQs2yd6JJ4rW1569cpRAqENmGmv2diEoucBAR","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"cryptocurrencies"}],"tags":[{"id":"Stablecoins"},{"id":"Developers"},{"id":"Ethereum"},{"id":"Protocols"},{"id":"Organizations"}],"media":[{"id":"QmXA8Z7nVoaRL38ihM86sAgBvPnyU9UcmPJPgFCPJvtcB6","name":"Cópia de Design sem nome (1).png","caption":"","thumbnail":"QmXA8Z7nVoaRL38ihM86sAgBvPnyU9UcmPJPgFCPJvtcB6","source":"IPFS_IMG"},{"id":"QmPezu6HQYkwCzcKrSvZ1Bn26GntaMoDtG56A1sH9nfGwx","name":"Black - rUSD png.png","caption":"","thumbnail":"QmPezu6HQYkwCzcKrSvZ1Bn26GntaMoDtG56A1sH9nfGwx","source":"IPFS_IMG"}],"metadata":[{"id":"references","value":"[\n  {\n    \"id\": \"BSlXr9dpJ2\",\n    \"url\": \"https://docs.reservoir.xyz/products/stablecoin-rusd\",\n    \"description\": \"Reservoir rUSD product documentation\",\n    \"timestamp\": 1760955222663\n  },\n  {\n    \"id\": \"Myqq3zUH7b\",\n    \"url\": \"https://www.cryptohopper.com/currencies/detail?currency=RUSD\",\n    \"description\": \"Reservoir rUSD market data and overview\",\n    \"timestamp\": 1760955222663\n  },\n  {\n    \"id\": \"ByQAOp3Dji\",\n    \"url\": \"https://docs.reservoir.xyz/\",\n    \"description\": \"Reservoir Protocol official documentation\",\n    \"timestamp\": 1760955222663\n  },\n  {\n    \"id\": \"hXrS2lYFrC\",\n    \"url\": \"https://www.reservoir.xyz/\",\n    \"description\": \"Reservoir protocol official homepage\",\n    \"timestamp\": 1760955222663\n  },\n  {\n    \"id\": \"6ThaunpkWh\",\n    \"url\": \"https://x.com/reservoir\\\\_xyz/status/1972647745292001693\",\n    \"description\": \"Official partnership announcement on X\",\n    \"timestamp\": 1760955222663\n  },\n  {\n    \"id\": \"event-world-liberty-financial-integration-link\",\n    \"description\": \"Event link\",\n    \"url\": \"https://x.com/reservoir_xyz/status/1972647745292001693\",\n    \"timestamp\": 1760955222866\n  },\n  {\n    \"id\": \"event-tvl-reaches-$526-million-link\",\n    \"description\": \"Event link\",\n    \"url\": \"https://www.reservoir.xyz/\",\n    \"timestamp\": 1760955222866\n  }\n]"},{"id":"website","value":"https://www.reservoir.xyz/"},{"id":"twitter_profile","value":"https://x.com/reservoir_xyz"},{"id":"discord_profile","value":"https://discord.com/invite/reservoir"},{"id":"references","value":"https://docs.reservoir.xyz/"},{"id":"medium_profile","value":"https://reservoir.beehiiv.com/"},{"id":"commit-message","value":"\"feat: Add wiki article on Reservoir rUSD, a decentralized multi-collateral stablecoin.\""}],"events":[{"id":"ead53f91-0ba6-40b8-ab98-3ec9ff3d7980","date":"2025-09","title":"World Liberty Financial Integration","type":"DEFAULT","description":"Reservoir integrated with World Liberty Financial, enabling native minting and redemption of rUSD using the USD1 stablecoin.","link":"https://x.com/reservoir_xyz/status/1972647745292001693","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"e0edb851-9c34-450d-9595-1108d12e9a23","date":"2025-10","title":"TVL Reaches $526 Million","type":"DEFAULT","description":"The protocol's official website reported a Total Value Locked (TVL) of $526 million and a 7.75% APY for its yield-bearing srUSD token.","link":"https://www.reservoir.xyz/","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"fa446499-e892-4aaa-8dc4-2d6cc2bfc0b9","date":"2025-10-20","title":"Reservoir rUSD Founded","type":"CREATED","description":"Reservoir rUSD was founded and officially launched."}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum"],"founders":["anon"],"speakers":[]},"operator":{"id":"0xd5893989b9952c6568a99F854795AcC5Ae480D56"}}