USD3, issued by the Reserve Yield Protocol smart contracts under the governance of tokenholders, is a tokenized basket of yield-bearing collateral that accrues value as its underlying interest-bearing assets generate yield onchain [S1][S2][S3].

USD3 represents a pro-rata claim on a diversified basket of yield-bearing ERC-20 collateral tokens held by the protocol's smart contracts, backed 1:1 with exogenous collateral [S1][S2][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 tokens are 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 [S1][S3]. Users under OFAC sanctions or in sanctioned countries are restricted [S4].

USD3 is an ERC-20 token; the Reserve Yield Protocol is deployed on Ethereum, Base, and Arbitrum [S6][S7][S3]. Holders mint by depositing the entire collateral basket and redeem the token for the underlying basket, with settlement atomic and onchain within seconds [S1][S7][S3]. NAV is maintained by permissionless arbitrage, with onchain price feeds used for default detection [S1][S3].

<Sources
  retrievedAt="2026-06-22"
  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" },
    { id: "S6", url: "https://docs.reserve.org/core-components/index-dtfs/roles" },
    { id: "S7", url: "https://app.reserve.org/" },
  ]}
/>


Tokenized funds

website

twitter

discord

github

Asset management

Reserve

Reserve Web 3 Dollar (USD3) is a tokenized fund share issued by Reserve.

USD3 has been issued on Ethereum as an ERC-20 token since April 2024, with a bridged version on one more network.

Reserve Web 3 DollarUSD3

All metrics