Reserve expands stablecoin protocol to Coinbase's Base network

Quick Take

  • Decentralized stablecoin protocol Reserve has launched on the Ethereum Layer 2 network Base.
  • The deployment allows users to create asset-backed tokens on the Coinbase-incubated blockchain.

Decentralized stablecoin protocol Reserve has launched on the Coinbase-incubated Layer 2 network Base, its first deployment beyond the Ethereum mainnet, according to a statement. 

The move enables users to create their own “RTokens” — decentralized stablecoins, flatcoins (pegged to the cost of living) or tokenized indices — using Reserve’s Asset Backed Currency Factory on the cheaper Layer 2 network. These assets are backed by overcollateralized baskets of Ethereum-compatible ERC-20 tokens.

Reserve's collateral options on Ethereum and Base include major stablecoins, ether and wrapped bitcoin, on their own or in yield-bearing form from protocols such as Compound, MakerDAO, Aave, Convex, Curve, Morpho and Flux Finance, the project said.

"DeFi should expand far beyond a few thousand power users," Reserve told The Block via email. "Base’s lower fees will enable people who are interested in using yield bearing stablecoins to actually use them without having all benefits wiped out by gas costs."

Reserve expands RTokens to Base

The first RToken on Ethereum, Electronic Dollar (eUSD), was introduced in February by the global payments app Moby for private transactions.


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During the tumultuous 2023 run on Silicon Valley Bank, eUSD was severely stress-tested when Circle's USDC stablecoin reserves, housed at the bank, plummeted from $1 to 88 cents. eUSD's decentralized “self-healing” mechanism kicked in, autonomously recapitalizing and returning to the $1 peg without relying on regulators or bank guarantees. This self-recovery feature is inherent to all RTokens, Reserve said.

The first RToken deployers on Base are expected to launch in the next few weeks, according to the team.

Reserve joins an array of protocols deploying on Base since its public launch in August, including Uniswap, SushiSwap, Compound and Chainlink.

Last week, real-world asset project Backed issued a tokenized security product on Base which tracks a short-term iShares U.S. treasury bond ETF.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

James Hunt is a reporter at The Block, based in the UK. As the writer behind The Daily newsletter, James also keeps you up to speed on the latest crypto news every weekday. Prior to joining The Block in 2022, James spent four years as a freelance writer in the industry, contributing to both publications and crypto project content. James’ coverage spans everything from Bitcoin and Ethereum to Layer 2 scaling solutions, avant-garde DeFi protocols, evolving DAO governance structures, trending NFTs and memecoins, regulatory landscapes, crypto company deals and the immersive metaverse. You can get in touch with James on Twitter or Telegram via @humanjets or email him at [email protected].


To contact the editor of this story:
Vishal Chawla at
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