Web 3 Dollar

Web 3 Dollar takes a different route to the dollar peg: instead of parking cash in a bank, it holds a basket of other yield-bearing dollar tokens. Minted as an RToken on the Reserve protocol, USD3 is backed by positions such as Compound's USDC, Morpho's Steakhouse USDC and Savings DAI, and the interest those assets throw off flows to holders, historically somewhere in the mid-single to low-double digits annually. It is a permissionless, over-collateralized onchain claim rather than a company's IOU: anyone can mint or redeem directly against the collateral basket through the protocol's contracts, with RSR stakers governing the design and standing as a backstop against shortfalls. USD3 lives on Ethereum and Base and remains a small token by market value, aimed at DAOs and treasuries that want a diversified onchain dollar.