About Reserve Rights

Reserve Rights (RSR) is an ERC-20 token integral to the Reserve protocol, primarily designed to facilitate the overcollateralization of Reserve stablecoins, known as RTokens. This overcollateralization is achieved through a staking mechanism, where RSR holders can stake their tokens on one or multiple RTokens. Additionally, RSR serves a governance function, allowing holders to propose and vote on modifications to the configuration of RTokens. Launched in May 2019 after a successful initial exchange offering, RSR aims to ensure the stability and reliability of the Reserve ecosystem. The RSR token also acts as a safety net for RToken holders, providing a buffer against potential defaults of collateral tokens. By staking RSR, holders contribute first-loss capital, which not only helps secure the value of RTokens but also allows them to earn a share of the revenue generated by the RTokens they support. The staking model of RSR is designed to be sustainable, ensuring that participants do not bear the costs of earlier investors, and it does not rely on trust in third parties. This structure aims to create a robust financial ecosystem that aligns the interests of all participants.