Reservoir is a decentralized finance (DeFi) protocol built on the Ethereum blockchain that issues a suite of stablecoins backed by a combination of digital assets and tokenized Real World Assets (RWAs). The protocol's primary stablecoin is rUSD, and it aims to provide a scalable, efficient, and yield-bearing stablecoin ecosystem. ^{[1] [2]}

Overview

Reservoir was designed to address what its creators identified as the "Stablecoin Pentlemma," a concept suggesting that next-generation stablecoins must be decentralized, stable, capital-efficient, have superior utility, and be sufficiently decentralized. The protocol functions as an on-chain banking system, utilizing an asset-liability management smart contract to offer yield-bearing products while maintaining stability. By incorporating RWAs, such as tokenized U.S. Treasury Bills, into its collateral base, Reservoir aims to generate more consistent and sustainable yields that are less correlated with the volatility of the crypto markets. ^[3]

The project was incubated by Fortunafi, an RWA tokenization platform founded in 2020. While developed by Fortunafi, Reservoir was established as a separate legal entity to focus on its stablecoin and yield products. The protocol's vision is to integrate RWA tokenization with DeFi applications to facilitate the onboarding of new asset classes. Its target users include stablecoin holders seeking native yield, crypto holders looking to leverage their assets, and institutions seeking scalable access to crypto markets. ^[2]

"The Reservoir network is built to unlock the demand for Real World Asset tokenization and native stablecoin utility with DeFi applications. The importance for a decentralized, scalable, efficient, and yield-bearing stablecoin has never been more clear and necessary to onboard and cross-collateralize the next $1T of assets." ^[4]

History

The development of Reservoir grew out of work by its incubator, Fortunafi, which was founded in 2020 and focused on the challenges of scaling RWAs in DeFi. On May 29, 2024, Fortunafi officially unveiled the Reservoir protocol, announcing its intention to launch it as a separate entity in June 2024. ^[2]

The protocol officially launched on the Ethereum mainnet on August 22, 2024, simultaneously introducing the "Reservoir Points Reward System" to incentivize user participation. Following the initial launch, the protocol expanded its product offerings with the release of srUSD, a yield-bearing stablecoin, on November 7, 2024. A day later, on November 8, 2024, Reservoir announced a partnership with Morpho and Steakhouse to launch a dedicated rUSD vault on the Morpho platform, enabling users to mint and borrow the stablecoin. ^[4]

In 2025, the protocol continued to expand its ecosystem and interoperability. On June 2, 2025, the team announced the upcoming launch of its native token, later confirmed with the ticker DAM on July 24, 2025. A significant technical milestone was reached on September 8, 2025, with the launch of the OneStable protocol, a cross-chain minting solution developed in collaboration with Enso, Stargate, and LayerZero. Later that month, on September 29, 2025, Reservoir announced an integration with World Liberty Financial, allowing users to natively mint and redeem rUSD using the USD1 asset on a 1:1 basis. ^{[5] [6]}

Technology and Architecture

Reservoir operates as a Collateralized Debt Position (CDP) protocol, allowing users to deposit approved collateral to mint its stable assets. The architecture is designed to manage risk through isolated markets and robust borrowing controls while generating yield from its diversified collateral portfolio. ^[7]

Token Ecosystem

The protocol features a multi-token system designed to serve different user needs, from stable transactions to yield generation.

• rUSD: The primary stablecoin of the protocol. It is designed to be overcollateralized, censorship-resistant, and transferable for use across DeFi applications.
• srUSD (Savings rUSD): A liquid, yield-bearing token that represents a user's stake in the Reservoir savings module. Holders earn a share of the yield generated by the protocol's underlying collateral assets.
• wsrUSD (Wrapped Savings rUSD): A wrapped version of srUSD, created to ensure compatibility with other DeFi protocols and platforms that follow specific token standards.
• trUSD (Term rUSD): A term-based, yield-bearing asset. This token is designed for users who are willing to lock their assets for a fixed duration in exchange for a potentially higher yield.
• DAM Token: An upcoming native token for the protocol. Its specific utility, such as governance or staking, was not fully detailed at the time of its announcement. ^{[1] [4]}

Key Smart Contract Modules

The protocol's stability and functionality are managed by several core smart contract modules.

• Peg Stability Module (PSM): This module is a key mechanism for maintaining rUSD's peg to the U.S. dollar. It allows users to swap rUSD for other approved stablecoins, such as USDC or USD1, at a 1:1 ratio with no slippage, providing a reliable arbitrage opportunity that helps enforce the peg.
• Credit Enforcer: This smart contract acts as the protocol's automated risk manager. It enforces financial rules regarding liquidity and solvency, caps the supply of rUSD and trUSD based on governance-set limits, and automatically deploys surplus assets into yield-generating strategies.
• Proof of Reserves: Reservoir includes an on-chain, real-time view of its balance sheet. This feature provides transparency by allowing anyone to verify the protocol's collateralization, solvency, and liquidity, with updates occurring at every transaction.
• Asset Adapters: These are modular smart contracts designed to integrate and manage the various types of digital and real-world collateral that back the protocol's assets. ^[3]

Cross-Chain Functionality

To address liquidity fragmentation across different blockchain networks, Reservoir collaborated with Enso, Stargate, and LayerZero to launch the OneStable protocol. This feature enables "one-click omnichain minting," allowing users to mint Reservoir's stablecoins from any supported chain without needing to manually bridge or swap assets. The system leverages Stargate's messaging and liquidity infrastructure and LayerZero's interoperability protocol to abstract away the complexities of cross-chain transactions. ^[5]

Connor Howe, CEO of Enso, stated: "OneStable simplifies the entire stablecoin lifecycle. It gives protocols the ability to concentrate liquidity where it’s most efficient, while still enabling users to access DeFi opportunities across chains, without touching a bridge." ^[5]

Tokenomics

As of October 2025, the Reservoir ecosystem included two primary tokens with active markets, rUSD and srUSD, with a combined market capitalization of approximately $397 million. ^{[8] [9]}

rUSD

• Type: USD Stablecoin
• Maximum Supply: Infinite
• Blockchain Presence: rUSD is a multi-chain asset deployed on networks including Ethereum, Solana, Base, Arbitrum One, BNB Smart Chain, and Avalanche. ^[8]

srUSD

• Type: Yield-Bearing Stablecoin
• Maximum Supply: Infinite
• Blockchain Presence: srUSD is available on Ethereum and Berachain. ^[9]

Partnerships and Integrations

Reservoir has established several strategic partnerships to expand its ecosystem and utility.

• Fortunafi: As the incubator, Fortunafi maintains a synergistic relationship with Reservoir. Fortunafi's RWA tokenization platform provides a source of high-quality, yield-bearing collateral for the Reservoir protocol, while Reservoir's rUSD stablecoin provides utility for RWA transactions.
• Enso, Stargate, and LayerZero: These protocols collaborated with Reservoir to build and launch the OneStable cross-chain minting solution.
• World Liberty Financial: An integration announced in September 2025 enabled users to mint and redeem rUSD directly with World Liberty Financial's USD1 stablecoin, enhancing liquidity and accessibility for rUSD.
• Morpho and Steakhouse: This partnership led to the creation of an rUSD vault on the Morpho lending platform, allowing users to borrow against their collateral or mint rUSD directly within the Morpho ecosystem. ^{[3] [5] [4]}

Security

The Reservoir protocol's smart contracts have been audited by the third-party security firm Halborn. However, the protocol's governance structure presents potential centralization risks. Protocol upgrades are controlled by a multisig wallet with fewer than four signers and no timelock, meaning changes can be executed immediately without a mandatory delay for community review. ^[7]

Additionally, security analysis service GoPlus has issued warnings for both the rUSD and srUSD token contracts. The notices indicate that the contract creator retains privileges that could allow for modifications such as disabling sales, changing transaction fees, minting new tokens, or transferring tokens from user wallets. Users are advised to exercise caution due to these centralized controls. ^{[8] [9]}