What is Reserve Rights (RSR)?
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🟢 The simple version
Plain English — no jargon. Start here.
RSR is the governance and insurance backstop token for the Reserve Protocol — a platform letting anyone deploy basket-backed RToken stablecoins from yield-bearing assets, with RSR stakers earning yield in exchange for being the first-loss insurance if a basket asset fails.
RTokens and RSR insurance
Reserve Protocol lets anyone deploy a basket-backed stablecoin (RToken) — e.g. backed 33% aUSDC + 33% cUSDT + 33% stETH. The basket generates yield. RSR stakers deposit RSR into RToken insurance vaults: if a basket asset depegs/fails, RSR is sold to cover losses, protecting RToken holders. RSR stakers earn a share of basket yield as compensation for this insurance risk. Real-world use: Latin America (Venezuela, Argentina) as inflation hedge. RTokens: eUSD, ETH+, hyUSD. Is RSR legal in India? Yes. 30% tax, 1% TDS apply.
🟡 A bit more detail
For when you want to go a little deeper.
RSR risk/reward
RSR stakers earn yield from RToken baskets in exchange for being first-loss on collateral failures. The risk: if a major stablecoin in a basket depegs (like USDC during a bank run), RSR is seized and sold. Diversified baskets reduce this risk. The real-world adoption in Latin America gives Reserve Protocol genuine utility beyond speculation.
🟣 The full technical picture
For the technically curious.
Key facts
- RSR: Governance + first-loss insurance for RTokens
- RTokens: Basket-backed stablecoins (permissionless deployment)
- Yield: Share of basket yield (for insurance risk)
- Real use: Latin America inflation hedge