Reserve: Temporary Suspension of eUSD and USD3 Minting and Rebalancing, Redemption Function Remains Open

BlockBeats News, April 20: Ethereum-based stablecoin platform Reserve has issued an official announcement stating that it is closely monitoring the attack on Kelp DAO's LayerZero bridge. Currently, Reserve DTF holders are judged to be minimally affected. If rsETH on the mainnet experiences significant devaluation (potentially requiring a 15.5-18.5% write-down), Aave may incur bad debt, which could further impact USDC collateral in Aave V3. RSR stakers in Reserve protocol's USD3 and eUSD may act as "first-loss capital" to provide protection, but the impact is minimal, and the excess collateralization of RSR is sufficient to cover it. ETH+ and bsdETH contain no rsETH collateral, posing zero risk. Out of caution, Reserve has temporarily suspended eUSD and USD3 minting, rebalancing, and RSR unstaking. The redemption function remains open, and users seeking protection from RSR over-collateralization are advised to continue holding.