Reservoir - srUSD
not rated yetReservoir is a next-generation stablecoin protocol incubated by Fortunafi that issues rUSD — a stablecoin backed by a reserve of on-chain lending positions (and, when governance allocates them, tokenized Real World Assets). By converting rUSD into srUSD (Savings rUSD), users earn yield from the protocol's underlying asset portfolio with no lock-up period.
How Reservoir and rUSD work:
- rUSD is minted 1:1 against USDC, USDT, or USD1 via the Peg Stability Module (PSM)
- The protocol's reserves are deployed into DeFi lending markets — in October 2026 mainly Curvance and Aave on Monad, Dolomite (USD1) and Morpho vaults — and governance can add RWA or other adapters
- Convert rUSD to srUSD (liquid savings) for daily interest accrual — no lock-up, instant redemption
- Or use wsrUSD (wrapped srUSD) for block-by-block interest accrual with zero fees
- A Credit Enforcer smart contract automatically checks liquidity, asset, and capital ratios on every transaction
- The balance sheet is published on a real-time Proof of Reserves page; the equity buffer above liabilities is thin (about 0.2% in October 2026)
Basic Information
Fundamentals
TVL
APR
Statistics
| Weekly | Monthly | Quarterly | Yearly | All-Time (Indexed) | |
|---|---|---|---|---|---|
Period Start | N/A | N/A | N/A | N/A | N/A |
| Period End (inclusive) | N/A | N/A | N/A | N/A | N/A |
| APR | N/A | N/A | N/A | N/A | N/A |
| APY | N/A | N/A | N/A | N/A | N/A |
CAGR | N/A | N/A | N/A | N/A | N/A |
Volatility | N/A | N/A | N/A | N/A | N/A |
Sharpe Ratio | N/A | N/A | N/A | N/A | N/A |
Sortino Ratio | N/A | N/A | N/A | N/A | N/A |
| TVL High | N/A | N/A | N/A | N/A | N/A |
| TVL Low | N/A | N/A | N/A | N/A | N/A |
Inflows | — | — | — | — | — |
Liquidity
Not calculated yet
Liquidity analysis will be available soon
Strategy
- Mint rUSD
- Deposit USDC, USDT, or USD1 via the Peg Stability Module at a 1:1 ratio
- rUSD is a non-yield-bearing stablecoin that serves as the base token
- Alternatively, purchase rUSD on secondary markets
- Convert rUSD to srUSD (Savings rUSD)
- Deposit rUSD into the Savings Module to mint srUSD
- srUSD accrues interest daily with no lock-up period
- Alternatively, use wsrUSD (wrapped srUSD) for block-by-block accrual and zero fees
- Earn yield from diversified reserves
- Yield is generated from the reserve's lending positions (Curvance, Dolomite, Aave, Morpho) across Ethereum, Monad, Plasma and Pharos
- Interest rate is set by governance based on protocol balance sheet conditions
- No lock-up — mint and redeem at any time
- Redeem anytime
- Convert srUSD back to rUSD at the increased exchange rate
- Redeem rUSD to USDC/USDT/USD1 via the PSM at 1:1 (subject to PSM liquidity)
- srUSD charges a micro burn fee equal to one day's interest; wsrUSD has zero fees
Yield Source
Yield is generated from the protocol's diversified reserve portfolio, which deploys backing assets across multiple yield-generating strategies. The protocol targets consistent returns regardless of market conditions.
Primary yield sources:
- Stablecoin lending on Monad: Over half of reserves (October 2026) supply USDC and AUSD to Curvance and USDC/GHO to Aave on Monad
- Other DeFi lending: USD1 on Dolomite, USDC in Morpho vaults (Sentora PRIME, Rockaway USDC on Pharos, Steakhouse Prime) and GHO on Aave Plasma
- No RWA allocation currently: The Proof of Reserves page showed no tokenized Treasury or other RWA position in October 2026, although governance can onboard RWA adapters
Yield characteristics:
- srUSD: Interest accrues daily; includes a micro burn fee equal to one day's interest on redemption
- wsrUSD: Interest accrues block-by-block with zero fees — more efficient compounding
- Governance-set rate: The srUSD/wsrUSD interest rate is actively adjusted by governance based on protocol balance sheet health
- Concentration: Reserves are entirely lending-market positions, so yield and solvency depend on a handful of lending protocols and their borrowers
The Credit Enforcer smart contract ensures that yield distribution never compromises the protocol's solvency by automatically checking liquidity, asset, and capital ratios during every interaction.
Strategy Limits
Deterministic Constraints
- srUSD redemption incurs a micro burn fee equal to one day's interest (wsrUSD has no fees)
- Redemption depends on PSM (Peg Stability Module) liquidity — if PSM is drained, redemption may be delayed
- Interest rate is set by governance and may change based on balance sheet conditions
- Not available to U.S. residents or sanctioned jurisdictions
Probabilistic Constraints
- Reserve asset performance is not guaranteed — third-party trading strategies carry loss potential
- High redemption volumes could strain PSM liquidity, potentially causing temporary depeg on secondary markets
- Over half of reserves sit in Monad lending markets (Curvance, Aave); an exploit, bad debt or withdrawal freeze there would hit rUSD backing directly
- Protocol is still in beta — continued development may introduce changes
Underlying Assets/Allocations
Reserve composition backing rUSD, srUSD and wsrUSD, from Reservoir's Proof of Reserves page on October 1, 2026. Allocations change as governance moves capital between adapters.
Risk Analysis
not rated yetPotential Risks
Based on the official Reservoir risk documentation, the following risks are associated with rUSD:
- Insufficient Reserves Risk - No guarantee that reserves will be sufficient for all holders to redeem rUSD at 1:1; fund insolvencies could leave holders unprotected
- Investment Strategy Risk - Third-party asset managers deploy reserves into trading strategies with no success guarantee; high loss potential from derivatives and leverage
- Redemption Cascade Risk - High redemption volumes could trigger feedback loops where liquidating positions depresses secondary market prices, driving further redemptions
- Smart Contract Risk - Contracts may contain vulnerabilities or bugs that could be exploited for asset theft; remediation of deployed contracts is complex
- Depeg Risk - No guarantee that rUSD will always trade at $1 across all platforms; secondary market price may fluctuate
- Lending-Market Concentration Risk - Reserves sit almost entirely in a few lending markets (Curvance, Dolomite, Aave, Morpho), over half on Monad; an exploit, bad debt or freeze in one of them would impair rUSD backing
- Governance Risk - DAM token holders make collective decisions with no single party ensuring adequate response to emergencies; governance decisions may negatively impact users
- Regulatory Risk - Not available to U.S. residents; evolving regulations could impair protocol operations or restrict access in additional jurisdictions
Risk Analysis (3rd Parties)
Summary
Reservoir's srUSD and wsrUSD pay a governance-set rate funded by the protocol's reserve, which in October 2026 sat entirely in DeFi lending markets — mostly Curvance and Aave on Monad, Dolomite (USD1) and Morpho vaults — with no Treasury or other RWA position. The Credit Enforcer provides automated solvency checks, the real-time Proof of Reserves page makes every position visible, and Halborn has audited the contracts five times. However, the equity buffer above liabilities is thin, reserves are concentrated in a few lending venues on a young chain, the protocol is still in beta and explicitly disclaims redemption guarantees, and redemptions depend on PSM liquidity that is refilled from those lending positions. Users should weigh this concentration, the beta status and the geographic restrictions (non-U.S. only) when sizing positions.
See the Halborn audit report: "Reservoir Protocol Security Assessment"
Halborn Audits: Halborn has audited Reservoir five times — the core protocol, the Morpho lending-market integration, the LayerZero bridge, wsrUSD with the rebalancer, and the rebalance contract. Findings were mostly addressed by the team. The protocol intentionally uses battle-tested older library versions (Chainlink 1.11.0, OpenZeppelin 4.8.1) for reliability over recency.
Credit Enforcer: An automated smart contract enforces financial covenants on every transaction — checking liquidity ratios, asset ratios, and capital ratios. Transactions that would compromise protocol solvency are automatically reverted.
Concentrated, Thinly Capitalized Reserves: Reservoir publishes every reserve position on its real-time Proof of Reserves page. On October 1, 2026 all reserves sat in DeFi lending markets — Curvance on Monad (~52%), Dolomite USD1 (~32%), Morpho vaults (~8%) and Aave on Monad and Plasma (~7%) — with no Treasury or other RWA position, and assets exceeded liabilities by only about 0.2%. A loss larger than that buffer in any one venue would leave rUSD under-backed.
No Redemption Guarantee: Per official documentation, "there is no guarantee that the Reserves will be sufficient to enable holders to redeem all Protocol Tokens on a 1:1 basis." High redemption volumes could create liquidity crunches and feedback loops.
Third-Party Asset Manager Risk: Reserves are deployed through third-party asset managers using trading strategies. The protocol explicitly states "no guarantee or representation is made that the Trading Strategies will be successful," and unsecured deposits lack deposit insurance.
Beta Status: The protocol is currently in a beta state and remains subject to further development and modification. There is no assurance it will function as intended. The governance model through DAM tokens is still evolving.