Reserve: Temporary Suspension of eUSD and USD3 Minting, Rebalancing; Redemption Functionality Operational

BlockBeats News, April 20th, the official announcement from the stablecoin platform Reserve on Ethereum stated that they are closely monitoring the attack on Kelp DAO's LayerZero bridge. Currently, Reserve DTF holders are unlikely to be affected. If rsETH on the mainnet is significantly devalued (potentially needing a 15.5-18.5% devaluation), Aave may experience defaults, which could then potentially affect Aave V3's USDC collateral.

RSR stakers in the Reserve Protocol's USD3 and eUSD may provide protection as "first loss capital," but the impact is minimal, and the RSR overcollateralization is sufficient to cover it.

ETH+ and bsdETH do not contain any rsETH collateral at all, making them zero-risk. As a precaution, Reserve has temporarily paused minting, rebalancing of eUSD and USD3, and RSR unstaking. The redemption function is still open, and users in need of RSR overcollateralization protection are advised to hold.