Announcing srUSD: A Yield-Bearing Stablecoin with No Lock-Up

Our Next Big Step Is Here!

Reservoir is excited to unveil srUSD, a groundbreaking liquid savings product designed for users who seek safe, flexible, and yield-bearing opportunities for their idle assets. Leveraging the stability of rUSD, our native stablecoin, srUSD offers daily interest accrual, instant minting and redemption, and low-risk yield – all without a lock-up period. User’s will be able to get their hands on srUSD beginning Monday, November 11th!

What To Know About srUSD

Next Monday’s (November 11th) launch of srUSD represents Reservoir's commitment to offering innovative, decentralized financial solutions that meet the market’s demand for accessible and sustainable yield on stablecoins. Here’s what srUSD brings to the table:

1. 6% APY: Holders of srUSD can expect a stable and reliable 6% APY that accrues block-by-block.

2. Instant Minting & Redemption, No Lock-Ups: Users can mint and redeem srUSD instantly, providing users a flexible, user-friendly experience aligned with our mission to make yield-bearing assets accessible to all.

3. Yield from a Diverse Balance Sheet: srUSD's yield is powered by a robust balance sheet with exposure to secure, diverse sources, including U.S. treasuries, DeFi yield, and algorithmic, market-neutral crypto strategies.

4. Immediate Liquidity through Reservoir’s Peg Stability Module (PSM): When available, Reservoir's PSM ensures instant liquidity fulfillment for srUSD, providing users confidence that their funds are accessible when needed.

5. Governance-Managed Interest Rates: Interest rates on srUSD are actively managed by Reservoir's governance and adjusted as interest is accrued on the balance sheet, reflecting the protocol’s focus on maintaining a sound and balanced system while offering competitive rates.

srUSD’s Launch Cap and Future Growth

srUSD will initially launch with a $25 million cap, allowing early users to capitalize on its yield opportunities. Future cap increases are planned as Reservoir scales to meet demand, giving more users access to this innovative yield-bearing token.

Starting today, users can also loop their srUSD to maximize their yield, allowing for compounding yield. Here’s how:

• Users connect their wallet to the Reservoir’s app.

• Users can then deposit srUSD as collateral into a Steakhouse rUSD vault on Morpho, a decentralized lending protocol built on Ethereum.

• Said collateral can be used to borrow Reservoir's rUSD stablecoin.

• rUSD can then be swapped for srUSD.

• Rinse and repeat.

• Risk to Looping: Please be aware that the cost of borrowing rUSD in the Morpho Market is variable based on a utilization curve. Under extreme demand when the utilization goes past 90% the cost to borrow may exceed the yield on srUSD. Please watch your health score and reach out with any questions.

How To Get Started & Learn More

Want to get your hands on Reservoir’s srUSD yield bearing token and/or Reservoir’s rUSD stablecoin? Be sure to visit our app on Monday, November 11th!

• The Reservoir App

If you want to learn more about Reservoir before diving in, be sure to check out the following resources:

• Reservoir GitBook: Learn more about the products powering Reservoir and how it all works under the hood.

• Reservoir Blog: Stay up-to-date with the latest protocol developments.

• Reservoir Twitter: Keep tabs on what we’re up to and what’s ahead.

• Reservoir Points Program: How to earn points for future Reservoir rewards.

We look forward to you joining us on our journey!

Disclaimer: The information contained herein is general information, intended for educational purposes only, and is not intended to constitute legal, tax, accounting, or investment advice. Information, opinions and views are solely of Fortunafi and none of the information contained should be used as the basis for an investment decisions. To ensure suitability, contact a licensed investment professional when making any investment decisions and do your own research.