Overview
This page gives a summary about USDR, the decentralized stablecoin of the Rezerve ecosystem
USDR is a decentralized stablecoin system designed to support a predictable and sustainable borrowing strategy for ETH.
It combines a collateralized stablecoin treasury with tokenized bond vaults, allowing the protocol to steadily accumulate ETH while rewarding users who participate.
The main components are:
USDR Treasury: lets you mint and redeem USDR stablecoins using supported assets like USDC or WETH.
USDR Bonds: An ERC4626 tokenized vaults where you can stake USDR for fixed periods to earn rewards, similar to traditional government bonds.
Why Does This Matter? Borrowing ETH Predictably
The ultimate design of the system is to allow the Treasury to borrow ETH in a controlled and predictable way. Here’s how it works:
Users Mint USDR: Treasury accumulates stable collateral (USDC, WETH, etc.).
Users Stake in Bonds: Locked USDR provides the protocol with stable, time-bound capital.
Treasury Borrows Against USDR: Using the locked liquidity, the protocol can borrow USDC from lending markets.
Treasury Buys ETH: Borrowed USDC is converted into ETH, growing reserves in a predictable manner.
ETH Exposure Drives Rewards: Over time, ETH appreciation and DeFi yield strategies generate returns, which flow back to bondholders as rewards.
This loop ensures that every user action minting stablecoins or staking them in bonds contributes directly to the protocol’s ability to borrow ETH in a sustainable, non-speculative way.
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