Reserve Portfolio
The reserve is a portfolio of assets that stratifies complex DeFi risks, including price risks, custodial/censorship risks, and leverage market risks. The Testnet Alpha reserve is composed of WETH, DAI, sUSD, USDC, and BUSD deployed in three Balancer pools:
Balancer Pool Assets
Initial Target Portfolio Weight
WETH / DAI
33%
WETH/ sUSD
33%
USDC / BUSD
34%
The target portfolio weights float as asset prices change (and in later implementations with governance may be periodically rebalanced). This is to protect the reserve from individual asset or pool failures, which may then only wipe out the given portion of the portfolio.
The actual portfolio weights may differ from the target weights by 10% (for Testnet Alpha, may be tighter in later versions) via minting and redemption operations. In particular, Gyro Dollars can be minted and redeemed for individual assets in the reserve up 10% portfolio deviation.
Last modified 7mo ago
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