Web3 Dollar (USD3) is a yield-bearing, USD-denominated stablecoin that operates on the Reserve protocol. Structured as a Decentralized Token Folio (DTF), it is fully backed by a diversified portfolio of interest-bearing stablecoin positions derived from overcollateralized decentralized finance (DeFi) protocols. USD3 is designed to maintain a value pegged to the U.S. dollar while passively generating and distributing yield to its holders. ^{[1] [5]}

Overview

Web3 Dollar (USD3) is a yield-bearing, USD-denominated stablecoin implemented as a Decentralized Token Folio within the Reserve protocol. It is fully collateralized on a one-to-one basis by a diversified basket of interest-bearing stablecoin positions deployed across overcollateralized decentralized finance lending markets. The underlying collateral consists of yield-generating stablecoin assets, and the aggregate yield produced by these positions accrues automatically at the protocol level and is reflected in the token’s redeemable value while maintaining a U.S. dollar reference. USD3 aggregates exposure to multiple DeFi lending venues into a single onchain token, removing the need for holders to manage individual lending, borrowing, or rebalancing activities. Collateral composition, revenue allocation, and risk parameters are governed onchain through the Reserve protocol, with predefined mechanisms for harvesting yield, managing surplus, and responding to changes in market conditions. The structure is designed to provide transparent, continuously accruing USD-denominated yield through a liquid, onchain asset that can be minted, redeemed, and used within decentralized finance applications. ^{[3] [5]}