Reserve Invests $20 Million in Yield Farming Tokens

According to an announcement made on June 20, Reserve is investing $20 million in the governance tokens of yield farming applications Curve (CRV), Convex (CVX), and Stake DAO (SDT).

The investment aims to enhance the liquidity of RTokens, the Reserve’s stablecoins.

It will also strengthen the Reserve’s voting power within the governance systems of these applications.

Reserve is a stablecoin protocol that enables users to create coins supported by any asset.

Through Reserve, stablecoins such as Electronic USD (eUSD), High-Yield USD (hyUSD), Reserve (RSV), Reserve Dollar (RSD), and ETH+ have been created.

Reserve was already the seventh-largest holder of Convex tokens before the announcement, trailing only Mochi, Redacted, JPGd, Badger, Clever, and FRAX.

The protocol acquired these tokens by extensively utilizing Convex to generate yield for its users.

The Reserve team stated that this new $20 million investment could enable new features for RTokens, such as “collateralized loans, wallet products, tokenizing real-world assets, and more transparent fintech systems.”

The highest market capitalization coin of the protocol, eUSD, is supported by dollar derivatives from Compound and Aave.

It has a market capitalization of over $20 million and a daily trading volume of approximately $500 million.

The team claims that eUSD’s use in the Android and iOS payment app RPay, commonly used in Latin America for remittances, purchasing, and payroll, has resulted in over $5.8 billion in cumulative volume.

High-Yield USD, the second-highest market cap coin of the protocol, is supported by a portfolio of dollar derivatives via Convex and Flex Finance.

On June 15, CRV reached a one-year low, so the $20 million investment may be welcome news to CRV token holders.

The new low was partially attributed to the controversy surrounding the Aave loans that Curve’s founder allegedly obtained.