[PIP-020] - Add Curve and Convex Receivers for eUSD/mkUSD pool to receive PRISMA rewards

Author: Tmattimore from ABC Labs (Reserve Protocol Core Team)

Date: 2024/01/25

Quick Information


This proposal aims to add receivers for the eUSD/mkUSD pool on both Curve and Convex. It will allow vePRISMA voters to direct PRISMA emissions to the pool once it is passes as a gauge and further grow TVL and liquidity for mkUSD. To drive this process, Reserve will make available Curve ecosystem voting power to further incentivize the eUSD/mkUSD pool.


An eUSD/mkUSD Curve pool with $500k TVL has recently been launched and the Reserve Protocol Core Team plans to direct Curve voting incentives towards the pool to deepen liquidity for both assets. A gauge for PRISMA emissions will further deepen liquidity and grow mkUSD reach within the Curve ecosystem.

About Reserve

Reserve is a free, permissionless platform on Ethereum mainnet to build, deploy and govern asset-backed currencies referred to as “RTokens.” RTokens are always 1:1 asset-backed, allowing for permissionless minting and redeeming on-chain by users without the need for any middlemen. The Reserve Protocol launched on Ethereum mainnet in Oct 2022, Base in Oct 2023, and completed its fifth audit in Feb 2023.

To cultivate RToken growth, Reserve invested $20 million in the Curve governance ecosystem to incentivize deeper onchain liquidity.

About eUSD

Electronic Dollar (eUSD) is a fully collateralized US-dollar stablecoin built on the Reserve Protocol with a mandate to:

  1. Maintain a $1 USD peg and be fully collateralized
  2. Generate yield to stakers who provide overcollateralization

eUSD is currently backed by 25% Compound USDC, 25% Compound USDT, 25% Aave USDC, and 25% Aave USDT. eUSD’s overcollateralization, provided by RSR stakers, makes the stablecoin hyper-resilient and built to endure black swan events, recently proving itself during the run on Silicon Valley Bank.

Launched in Feb 2023, eUSD has grown to over $18.6m TVL with 143% collateral backing.

Motivation & Benefits to Prisma

Reserve will enhance mkUSD liquidity within the curve ecosystem with its eUSD/mkUSD pool by utilizing its its Curve governance ecosystem voting power to increase liquidity for mkUSD and diversify its pool pairings.


Curve Pool Link: https://curve.fi/#/ethereum/pools/factory-stable-ng-60/deposit

Curve Pool Address: 0xc37c0e88551ed383c1abedc6628a5579071bf56f

Curve Pool Gauge: 0xd8389b892252c49fe9225db4528f553317ac09e9

Potential risks and mitigation

Reserve Protocol Smart Contract Risk

Reserve is a complex codebase. Despite 5 audits, a year on mainnet, a $5M bug bounty and 8 figure TVL, it is feasible that a flaw in the protocol is discovered and exploited. Despite the efforts documented in this outline and more, as with all smart contracts, this risk remains.

Proposal Benefits:

  • Increased mkUSD liquidity and demand leveraging Reserve Curve ecosystem governance influence
  • Additional mkUSD pairings unlocks additional trade routes to other assets

Proposal Downsides:

  • Potential smart contract and governance risk. Reserve protocol on mainnet is just one year old, making it less tested than other mkUSD pairings.

Additional eUSD analysis

Llama Risk - Asset Risk Assessment: Reserve Protocol (eUSD)


  • If you agree with this proposal, a [YES] vote would lead to the following:
    • Add receiver for eUSD/mkUSD pool to receive PRISMA rewards
  • If you disagree with this proposal, a [NO] vote would result in the continuation of Prisma operations as is.

Seems like a reasonable proposal to me. Reserve has significant veCRV an vlCVX positions, so if you intend to direct incentives toward this LP pair it makes sense to also add a Prisma receiver.

Welcome to our community!


that’s the idea. no reason for everyone to pay for liquidity separately when we can do it together.

thanks for the welcome!