Reservoir Protocol

Set of smart contracts that act as a bank issuing liabilities in the form of tokens: rUSD, srUSD, and trUSD, which will be backed by assets and restricted in their supply by the configured solvency ratios.

Introduction

This repository contains the full suite of smart contracts that define the Reservoir protocol. User's are able to purchase the native stablecoin rUSD and exchange it for fixed term or variable rate yield bearing tokens trUSD and srUSD. The liabilities of the protocol are backed by a mix of Real World Assets (RWA) and onchain yield bearing assets in lending protocols and AMMs.

The assets where capital is allocated is fully configurable through governance, and solvency in the protocol is controlled by ratios set through governance that constrain leverage in the system.

Flow of Funds

The sequence of actions between users and the fund administrator (governance):

User deposits *USDC* or redeems *rUSD*
Fund administrator (governance) moves capital between the peg stability module and any of the asset adapters add to the credit enforcer
Fund administrator (governance) leaves some capital in the peg stability module for any potential upcoming redemptions
The price of the asset adapters change automatically and reflect a new asset value to the protocol

Operations

Governance is able to transfer USDC from the PSM to the different modules that generate yield for the protocol. USDC is moved into a variety of DeFi ecosystems and used for investment in Real World Assets (RWAs)

Deposit

Users deposit their USDC into the peg stability module and receive rUSD, from there they are able to use their rUSD in whatever way they choose, getting liquid and term yield with srUSD and trUSD or simply using it across the DeFi ecosystem.

Redemptions

For redemptions, a user is able to receive back USDC for their rUSD up to the amount available in the PSM which is restricted to some percentage of the total rUSD outstanding.

Setup

    $ curl -L https://foundry.paradigm.xyz | bash

    $ forge install

    $ forge test

Development

Foundry tests cover all the possible cases that can occur while interacting with functions, or in general flow. To run Foundry tests, use the following cmd:

    $ forge test

Deployment

Local

anvil

Ethereum

Scripts used for deployment can be found under bin/.

Security & Audits

Here are the audits we completed with Halborn:

1. Protocol-wide audit
2. Morpho lending market audit
3. Cross-chain bridging audit

We accept security bug reports at [email protected]