Token Description & Project Background

Reserve Rights (RSR) is the utility token of the Reserve Protocol, a stablecoin platform on Ethereum. 

RSR serves two main purposes for the Reserve Protocol: a) insuring Reserve stablecoins through staking; b) governing them through proposing & voting on changes to their configuration. 

Reserve’s flagship stablecoin is RSV, a dollar-pegged asset backed by TUSD, PAX and USDC, protocol documentation explained. Within the context of RSV, the Reserve Rights (RSR) tokens are used to stabilize the token’s USD-peg and also to maintain collateralized reserves.

The protocol also allows for the issuance of RTokens, stable-value assets secured by an underlying basket of ERC20 tokens. In theory, anyone can create an RToken provided they have enough funds to back it.

Staking RSR to a specific RToken entitles the token holder to various cash flows generated by the stablecoin.

According to project documentation, RTokens can generate revenue by lending out their underlying collateral, collecting transaction fees, and also though revenue sharing agreements with collateral issuers.

Governance is controlled by the RToken’s creators who ultimately determine the monetary reward dished off to RSR stakers.

The RSR token was launched publicly in May 2019. 

Reserve Protocol was founded by Nevin Freeman (Co-Founder & CEO) and Matt Elder (Co-Founder & CTO).

Risks of RSR

Like an investment in other crypto assets, there are some general risks to investing in RSR. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in RSR is subject to the following specific risks:

• The stablecoin space faces intense competition. Any potential success associated with RSR is dependent on the Reserve Right’s rate of adoption by users, as well as of the RSV stablecoin.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with RSR. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The RSR community and Reserve Right team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of RSR have no recourse to the RSR community, Reserve Right tea,, or Uphold if RSR declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing RSR on the Uphold Platform, Uphold performed due diligence on RSR and determined that RSR is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of RSR, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of RSR.
• Any marketing materials put forward by the RSR social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with RSR, including any code defects, security breaches and other threats concerning RSR and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with RSR, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of RSR. 

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 15, 2023.