Reservoir ProtocolMicro-cap

Reservoir Protocol receives a B- risk grade (35/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — hybrid on-chain/RWA backing model with limited PSM redemption capacity, balanced by overcollateralization and diversified yield sources. Reservoir Protocol issues rUSD, a stablecoin backed by a mix of USDC, DeFi yield positions, and Real World Assets. With $57M TVL, its B- grade reflects a reasonable architecture with standard CDP mechanics, moderated by governance-controlled reserve allocation risk and limited PSM redemption capacity.

The key risks identified for Reservoir Protocol are: (1) Redemption of rUSD to USDC through the Peg Stability Module is limited to the available USDC balance, which is a percentage of total rUSD supply. In a mass redemption event, not all holders could exit simultaneously. (2) Part of rUSD's backing comes from Real World Assets, which cannot be liquidated as quickly as on-chain crypto assets. This could delay redemptions during market stress. (3) The protocol depends on multiple external DeFi protocols for yield generation. An exploit in any of these external protocols could affect rUSD's backing.

Reservoir Protocol scores 35/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 6/20, Oracle Surface: 5/10, Documentation Gaps: 4/10, Track Record: 4/15, Scale Exposure: 5/10, Regulatory Risk: 5/10, Vitality Risk: 3/10. The highest risk area is Oracle Surface at 5/10.

Among 25 rated CDP protocols on Hindenrank, Reservoir Protocol ranks #10 by safety (lowest risk score = safest). Its 35/100 risk score and B- grade place it in the middle tier of CDP protocols.

Reservoir Protocol scores 4/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.