bsdETH (Based ETH), issued by the Reserve protocol smart contracts under the governance of tokenholders, is a yield-bearing Decentralized Token Folio (Yield DTF) backed by a basket of ETH liquid-staking tokens that accrues value as its underlying collateral generates yield onchain [S1][S2][S3].

The token represents a pro-rata claim on a diversified, over-collateralized basket of yield-bearing ERC-20 collateral held by the protocol's smart contracts [S1][S3]. A Backing Manager periodically harvests yield from the interest-bearing collateral, and once a surplus threshold is met, onchain revenue auctions sell accrued rewards, with governance routing revenue among tokenholders and RSR stakers [S1][S3]. Fee rates and revenue routing for Yield DTFs are governance-managed onchain [S3].

The token is issued by permissionless smart contracts rather than a single corporate entity; ABC Labs, LLC operates the interface and states it is not a bank, broker-dealer, investment adviser, or other regulated financial intermediary, and is not registered with the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, or any other financial authority [S1][S4][S5]. Tokens are not deposits, not legal tender, not guaranteed by any entity, bank, or government, and not insured by the FDIC or SIPC [S5]. Holders redeem permissionlessly onchain at real-time NAV, with staked RSR providing a first-loss buffer seized on default; users under OFAC sanctions or in sanctioned countries are restricted [S4].

bsdETH is an ERC-20 token deployed on Base [S1][S3]. Holders mint by depositing the collateral basket and redeem the token for the underlying basket, with settlement atomic and onchain within seconds [S1][S3]. NAV is maintained by permissionless arbitrage, with onchain price feeds used for default detection [S1][S3].

<Sources
  retrievedAt="2026-07-17"
  items={[
    { id: "S1", url: "https://reserve.org/" },
    { id: "S2", url: "https://docs.reserve.org/core-components/yield-dtfs.md" },
    { id: "S3", url: "https://docs.reserve.org/core-components/yield-dtfs/overview" },
    { id: "S4", url: "https://reserve.org/terms-and-conditions" },
    { id: "S5", url: "https://reserve.org/terms_and_conditions" },
  ]}
/>


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Reserve

Based ETH (bsdETH) is a tokenized fund share issued by Reserve.

The fund is open-ended and invests in crypto assets.

Retail investors, professional investors, accredited investors, qualified investors, qualified purchasers, and institutions can mint and redeem directly with Reserve in ETH, and holders have a right to redeem at net asset value with instant settlement.

bsdETH has been issued on Base as an ERC-20 token since February 2024.

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