Electronic USD

eUSD was the first token minted on Reserve Protocol, launched in early 2023 as a template for permissionless, asset-backed dollars. Rather than sitting on cash in a bank, it is backed by a basket of yield-bearing stablecoin positions drawn from lending markets like Aave and Compound. Its distinctive feature is a second layer of protection: holders of the protocol's RSR token can stake it as first-loss capital, so if any collateral in the basket depegs, that staked value is auctioned to cover the gap. There is no company to call for redemption; the token is minted and redeemed directly through smart contracts against its collateral, which keeps the claim fully onchain. eUSD trades across Ethereum, Base and Arbitrum. It appeals to users who want a dollar that is decentralised and over-collateralised rather than one resting on a single issuer's reserves.