Decentralized Stablecoin Protocol Reserve Expands to Coinbase-incubated Layer 2 Network Base
The decentralized stablecoin protocol Reserve has announced its first deployment beyond the Ethereum mainnet on the Coinbase-incubated Layer 2 network Base. This move allows users to create their own decentralized stablecoins, flatcoins pegged to the cost of living, or tokenized indices using Reserve’s Asset Backed Currency Factory on the cheaper Layer 2 network. These assets are backed by overcollateralized baskets of Ethereum-compatible ERC-20 tokens.
Collateral Options and Lower Fees on Base
Reserve’s collateral options on Ethereum and Base include major stablecoins, ether, and wrapped bitcoin. Users can choose to hold these assets individually or in yield-bearing form from various protocols such as Compound, MakerDAO, Aave, Convex, Curve, Morpho, and Flux Finance. The lower fees offered by Base will allow more people to use yield-bearing stablecoins without being hindered by high gas costs.
Reserve’s Self-Recovery Feature: eUSD as an Example
The first RToken introduced on Ethereum was the Electronic Dollar (eUSD) by Moby in February. During a period of market turbulence when Circle’s USDC stablecoin reserves dropped significantly, eUSD demonstrated its resilience with its decentralized “self-healing” mechanism. It autonomously recapitalized and returned to its $1 peg without relying on regulators or bank guarantees. This self-recovery feature is inherent to all RTokens created using Reserve.
Expansion to Base and Future Deployers
The launch of Reserve on Base marks an expansion of its offerings. The team expects the first RToken deployers on Base to launch within the next few weeks. Reserve joins other protocols such as Uniswap, SushiSwap, Compound, and Chainlink in deploying on Base since its public launch in August.
Hot Take: Reserve’s Expansion to Base Opens New Possibilities for DeFi
The expansion of Reserve’s decentralized stablecoin protocol to the Coinbase-incubated Layer 2 network Base brings new opportunities for the decentralized finance (DeFi) ecosystem. By leveraging the lower fees and scalability of Base, more users will be able to access yield-bearing stablecoins without being burdened by high gas costs. This move aligns with Reserve’s goal of making DeFi accessible to a wider audience, expanding beyond a few power users. As Reserve continues to innovate and expand its offerings, it contributes to the growth and development of the DeFi space.
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