What is Reservoir (DAM)?

Deep Dive

1. Purpose & Value Proposition

Reservoir aims to solve liquidity fragmentation in DeFi by creating a unified ecosystem for stablecoins. Its flagship product, rUSD, is a collateral-backed stablecoin, while srUSD offers daily yield accrual (e.g., 6–8.75% APY) without lock-ups (Reservoir). The protocol aggregates yield from diversified sources like U.S. treasuries and DeFi strategies, balancing risk and returns.

2. Technology & Architecture

Reservoir uses a Peg Stability Module (PSM) to ensure 1:1 redemptions between rUSD and assets like USDC, even during market stress. Its cross-chain infrastructure, such as the OneStable protocol with Enso and LayerZero, allows users to mint stablecoins on any chain without manual bridging (The Defiant). This reduces reliance on fragmented liquidity pools.

3. Tokenomics & Governance

DAM tokens (10% allocated to early users via points) govern interest rates, collateral types, and protocol upgrades. Holders access boosted yields, staking rewards, and voting rights. For example, Season 2 participants earn points convertible to DAM, with loyalty boosts for long-term stakers (Reservoir).

Conclusion

Reservoir combines yield-bearing stablecoins, cross-chain interoperability, and community governance to streamline DeFi liquidity. Its DAM token aligns incentives between users and protocol growth. How will Reservoir’s expansion to networks like Monad and Arbitrum shape its role in multi-chain stablecoin adoption?