Reserve
DeFi
Assets set aside to back liabilities or stabilize systems.
Reserves are assets held to back promises, like redemptions or pegs. Clear reporting and third party checks increase trust that reserves are real and sufficient.
Frequently asked questions
What is the purpose of reserves?
To back redemptions, stabilize pegs, or absorb shocks in protocols.How do I evaluate a reserve?
Look for transparent reporting, audits, and on chain proofs where possible.Can reserves be off chain?
Yes. Off chain reserves need credible attestations and clear legal rights.