Reservoir srUSD (SRUSD) is a decentralized, yield-bearing stablecoin issued by the Reservoir protocol. It is designed as a liquid savings product that allows holders to earn interest on their stablecoin assets without a lock-up period, with yield generated from a diversified portfolio of digital and real-world assets.

Overview

Reservoir srUSD is a component of the broader Reservoir protocol, which aims to establish a scalable and decentralized stablecoin ecosystem. The protocol's mission is to provide a suite of financial products built around its core stablecoin, rUSD, offering users consistent yields derived from a diversified balance sheet. The ecosystem is built on the Ethereum blockchain with native integrations on other networks, including Berachain. ^{[1] [2]}

The Reservoir protocol's product suite includes several interconnected assets. The primary stablecoin is rUSD, which users can mint against various forms of collateral. srUSD (Savings rUSD) functions as the protocol's main liquid savings vehicle, allowing users to deposit rUSD to earn a variable interest rate. For users seeking different yield structures, the protocol also offers trUSD, a term-based asset for fixed-period deposits. The ecosystem is further supported by permissionless lending markets and a protocol token named DAM. The yield for srUSD is generated from the performance of the protocol's underlying assets, which are managed to be of higher quality and lower volatility than those of some competing protocols. ^[2]

As of October 18, 2025, the Reservoir protocol reported a Total Value Locked (TVL) of $526 million and an Annual Percentage Yield (APY) of 7.75% for srUSD. The protocol emphasizes features such as multi-collateral backing and instant liquidity for its products. The srUSD token itself is designed to be a flexible financial instrument, providing daily interest accrual while maintaining liquidity for its holders. ^[3]

History

The Reservoir protocol announced the upcoming launch of srUSD on November 7, 2024, positioning it as a yield-bearing stablecoin with no lock-up requirements. The product officially went live on November 11, 2024. At its launch, srUSD offered a 6% APY and was introduced with an initial supply cap of $25 million, with plans to increase the cap as user demand grew. The launch announcement was attributed to Fortunafi, indicating its role as a potential core development team or parent company behind the protocol. ^[4]

A significant development in the protocol's history occurred on September 29, 2025, when Reservoir announced a strategic integration with World Liberty Financial. This partnership enabled users to natively mint and redeem the protocol's core stablecoin, rUSD, on a 1:1 basis with World Liberty Financial's USD1 stablecoin. The feature was made available directly on the Reservoir application, offering slippage-free, cross-chain transactions. In its announcement, the Reservoir team stated, "Reservoir is one of the first stablecoin protocols to enable this feature for USD1 holders." This integration expanded the collateral base for the Reservoir ecosystem and provided new utility for both rUSD and related assets like srUSD. ^[5]

Technology

The functionality of Reservoir srUSD is supported by several key architectural components and mechanisms within the Reservoir protocol. These systems manage minting, redemption, yield generation, and collateral backing.

Core Architecture

The srUSD token is managed by a dedicated component of the protocol known as the Savings Module. This module oversees the processes of minting and redeeming srUSD. Users mint srUSD by depositing the protocol's primary stablecoin, rUSD, into the module. The process is designed to be straightforward, allowing for a direct conversion from a non-interest-bearing stablecoin to a yield-bearing one. ^[6]

Redemptions of srUSD back to rUSD are designed to be instant, providing users with high liquidity. This immediate fulfillment is contingent on the available liquidity within another core component, the Peg Stability Module (PSM). The PSM is responsible for maintaining the stability of the rUSD peg and facilitates the 1:1 exchange between rUSD and approved collateral assets, thereby ensuring that sufficient reserves are available for srUSD redemptions. ^{[6] [5]}

Yield Generation and Collateral

The yield offered to srUSD holders is generated from the protocol's diversified balance sheet. The assets backing the protocol include a mix of traditional financial instruments and on-chain strategies. The primary sources of yield include:

• U.S. Treasuries
• Various DeFi yield strategies
• Algorithmic, market-neutral crypto strategies

This diversified approach is intended to provide more consistent and stable returns compared to protocols that rely on a single source of yield. The interest rate for srUSD is variable and is actively managed by the protocol's governance. Adjustments to the rate are made based on the overall performance and interest accrued on the protocol's balance sheet. ^[4]

The protocol's stability and value are derived from its multi-collateral backing, which includes a combination of digital assets and Real World Assets (RWA). This model aims to reduce volatility and enhance trust. A key component of this strategy is the integration of other stablecoins as direct collateral. For instance, the partnership with World Liberty Financial allows for rUSD to be minted 1:1 with the USD1 stablecoin, directly incorporating USD1 into Reservoir's backing assets. ^{[1] [5]}

srUSD and wsrUSD

In addition to srUSD, the Reservoir protocol offers a wrapped version, wsrUSD. While both tokens are liquid, yield-bearing assets minted from rUSD, they have distinct mechanics for interest accrual and fees. The underlying interest rate for both tokens is identical. | Feature | srUSD | wsrUSD | | --- | --- | --- | | Interest Accrual | Daily | Per | | Fees | A "micro burn fee" on redemption, equal to one day's interest on the principal. | No fees for minting or redemption. | | Use Case | General savings and holding. | Often preferred for DeFi composability due to per-block accrual. | The primary differences cater to different user needs. The per-block interest accrual of wsrUSD makes it more suitable for integration with other DeFi protocols where real-time value updates are beneficial. The absence of fees on wsrUSD also makes it more attractive for frequent transactions. ^[6]

Advanced User Strategies

The Reservoir ecosystem is designed to be composable with other DeFi protocols, enabling advanced yield strategies. One such strategy is "looping," which allows users to leverage their srUSD holdings to amplify their yield. This process involves the Morpho protocol, a decentralized lending platform on Ethereum.

The steps for the looping strategy are as follows:

1. A user deposits srUSD as collateral into the Steakhouse rUSD vault on Morpho.
2. The user then borrows the rUSD stablecoin against their srUSD collateral.
3. The borrowed rUSD is swapped for more srUSD.
4. This new srUSD is deposited back into the vault, and the process can be repeated to increase leverage.

This strategy carries significant risks. The borrowing cost for rUSD on Morpho is variable and determined by market utilization. If demand for borrowing rUSD becomes extremely high (e.g., utilization surpasses 90%), the borrow rate may exceed the APY earned on srUSD, resulting in a net loss for the user. Users engaging in this strategy are advised to monitor their "health score" on the Morpho platform to manage their risk of liquidation. ^[4]

Tokenomics

As of October 20, 2025, the tokenomics and market data for Reservoir srUSD (SRUSD) are as follows. The token exists on both the Ethereum and Berachain networks.

• Ticker: SRUSD
• Blockchains: Ethereum, Berachain
• Ethereum Contract Address: 0x738d1115b90efa71ae468f1287fc864775e23a31
• Berachain Contract Address: 0x5475611dffb8ef4d697ae39df9395513b6e947d7
• Max Supply: Infinite (∞)

SRUSD tokens are traded on decentralized exchanges, with Uniswap V3 (Ethereum) being the most popular platform. The most active trading pair is SRUSD/USDC. ^[1]

Ecosystem and Partnerships

The growth and utility of the Reservoir protocol and srUSD are supported by strategic partnerships and integrations within the broader DeFi ecosystem.

• World Liberty Financial: This integration is a key partnership that enhances the collateral backing of the Reservoir protocol. It allows users to mint and redeem rUSD directly with the USD1 stablecoin at a 1:1 ratio without slippage. This collaboration, referred to as "LibertyVoir," was one of the first of its kind for the USD1 stablecoin and expanded the cross-chain capabilities of Reservoir. ^[5]
• Morpho: The Morpho protocol is a decentralized lending platform on Ethereum that plays a crucial role in advanced yield strategies for srUSD holders. By allowing srUSD to be used as collateral, Morpho enables users to borrow other assets and engage in leveraged yield farming, such as the "looping" strategy. ^[4]
• Steakhouse: Steakhouse is the entity that provides the specific rUSD vault on the Morpho protocol (0xBeEf11eCb698f4B5378685C05A210bdF71093521) used for collateralizing srUSD. This specialized vault is the venue where users deposit their srUSD to borrow rUSD as part of the looping strategy. ^[4]

Legal and Security Considerations

The use of srUSD and other Reservoir protocol products is subject to certain restrictions. Access is limited to non-U.S. users and individuals in non-sanctioned countries. This compliance measure is common among DeFi protocols to navigate complex regulatory environments. ^[6]

A security notice from the GoPlus platform has highlighted potential risks associated with the srUSD smart contract. According to the notice, the token contract creator possesses privileges that could allow for modifications to the contract's functions. These potential changes include the ability to disable sales, alter transaction fees, mint new tokens, or transfer tokens from user wallets. Users are advised to exercise caution and be aware of these centralized risks when interacting with the token. ^[1]