The reserve fund acts as an additional margin of safety behind USDe to provide a source of capital to pay for periods of negative funding, as well as a bidder of last resort for USDe in open markets.
Composition of Reserve Fund
Stable uncorrelated collateral to cover funding payments in same currency denomination:
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Stablecoin assets including USDC and USDT for USD-M contracts
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Other assets as determined by governance
The Reserve Fund category of governance will be used to discuss matters related to the Reserve fund, such as, but not limited to:
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Defining and monitoring split of assets included in the reserve
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Manage interest rate generation of capital pool
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Monitoring size relative to USDe and defining whether reserves are adequately large
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Quantitative analysis on stressed modelling of fund size