What is Reserve Rights (RSR)?
Reserve Rights (RSR) is one of two core components of the Reserve protocol, which allows anyone to create their own stable-value tokens. These tokens, called RTokens, are each backed by a specific basket of assets. RSR serves as community-supplied safety capital that helps keep RTokens on target.
How RSR shields RToken value
When the collateral behind an RToken loses value, staked RSR on that particular RToken is used to cover the shortfall. The protocol automatically sells or auctions the staked RSR to restore the backing, meaning RToken holders are largely insulated from the impact. In exchange for taking on this first-loss risk, stakers earn a share of transaction fees and newly minted RSR rewards.
Giving RSR holders a say in the protocol
RSR also functions as a governance token. Key decisions — such as which RTokens to create and what assets can serve as collateral — are made through token-weighted voting by RSR holders. This places the protocol’s direction in the hands of the community that uses and secures it.
A platform for custom stable assets
Unlike traditional stablecoins that rely on a single issuer’s reserve, the Reserve protocol lets users design their own RTokens with custom currency pegs and collateral baskets. The RSR staking mechanism acts as a shared security layer across this varied landscape. As a result, a failure in one collateral asset does not threaten the entire system; it only affects the RSR staked on the affected RToken.
