Reservoir
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About Reservoir
Analysis of 27 Dec 2025Reservoir is a next-generation permissionless stablecoin protocol built on Ethereum that addresses the "Stablecoin Pentalemma" of decentralization, stability, capital efficiency, scalability, and utility. The protocol offers a comprehensive suite of products including rUSD (overcollateralized stablecoin), srUSD (liquid yield-bearing asset), wsrUSD (wrapped savings variant), and trUSD (fixed-term yield product).
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Launched in August 2025 with its DAM governance and utility token, Reservoir distinguishes itself through its multi-collateral backing combining both digital assets and Real World Assets (RWAs). The protocol reported a Total Value Locked (TVL) of $526 million by October 2025, with srUSD offering approximately 7.75% APY and DAM staking yields between 8-15%.
The protocol's Credit Enforcer smart contract automatically enforces liquidity and solvency ratios during every asset interaction, reverting transactions that could create imbalances. Combined with a Peg Stability Module (PSM) and real-time Proof of Reserves, Reservoir maintains reliable peg stability for rUSD while deploying assets into automated yield strategies.
With cross-chain expansion to Solana and Avalanche planned for Q4 2025 and a strategic integration with World Liberty Financial announced in September 2025, Reservoir is positioning itself as a scalable infrastructure for decentralized stablecoin adoption. The protocol has undergone four comprehensive audits covering core protocol, Morpho lending integration, LayerZero cross-chain functionality, and wsrUSD rebalancer mechanisms.