Decentralized stablecoin platform, Reserve, has extended its protocol to Coinbase’s Layer 2 Base network, marking its initial venture outside of Ethereum’s primary network.
With this development, users can now generate their unique “RTokens” on the Base network. These tokens are decentralized stablecoins, flatcoins indexed to living costs, or tokenized indices produced via Reserve’s Asset Backed Currency Factory. Importantly, they are bolstered by highly collateralized sets of Ethereum-compatible ERC-20 tokens.
Key collateral options under Reserve, both on Ethereum and Base, encompass leading stablecoins, ether, and wrapped bitcoin. Additionally, they can be used in their yield-bearing format through platforms like Compound, MakerDAO, Aave, and others.
Highlighting the significance of this expansion, Reserve mentioned that the reduced fees on Base make yield-bearing stablecoins more accessible. It ensures users get the benefits without being undercut by high gas expenses.
A noteworthy mention is the Electronic Dollar (eUSD) – the maiden RToken on Ethereum introduced by global payment app, Moby. In a 2023 crisis involving Silicon Valley Bank, eUSD demonstrated its resilience. Circle’s USDC stablecoin reserves dropped significantly during this period, but eUSD’s innate “self-healing” feature autonomously stabilized its value. This self-correction trait is consistent across all RTokens.
In the upcoming weeks, the first RTokens on Base are set to roll out. This move by Reserve adds to the growing list of protocols like Uniswap and Chainlink that have adopted the Base network since its public introduction in August.
In related news, just a week ago, the Backed project launched a tokenized security offering on Base, mirroring a short-term iShares U.S. treasury bond ETF.
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