How to Stake RSR on High Yield USD
Base Network
RSR is the governance and yield capture token of the Reserve Protocol. A governance token allows holders to participate in on-chain governance, and holds a few other vital roles as well.
An RToken is the name for any asset backed token (such as a stablecoin or flatcoin) deployed on the Reserve Protocol.
As an RSR holder, you can stake your RSR on any RToken, which then gives you governance voting rights on that specific RToken.
You can now vote on decisions for this RToken
You now earn a share of revenue from the yield that is generated from the underlying basket of assets.
You now provide overcollateralization for the RToken. This means that you provide first-loss capital if any of the assets in the collateral basket default.
There are pros and cons to be considered before making a decision to stake your RSR, and it might be wise to see how many other stakers there are on the RToken, and understand the collateral basket, so you know what assets you are providing (and what risks you are taking) with overcollateralization.
When you stake RSR, you will receive a receipt token (for instance, if you stake on hyUSD, you will receive “hyUSDRSR” in your wallet).
If the collateral basket of assets has been generating yield, and no defaults (such as bank runs or Black Swans) have happened, then you will earn yield for the length of time you have been staking. Yield is distributed via regular auctions, that you can read about (here).
As yield accumulates and auctions are held, the reward ratio between hyUSDRSR and RSR appreciates.This means, in simple terms, after you unstake your RSR, and your hyUSDRSR is exchanged back into RSR, you will have more RSR in your wallet than when you first started staking — you have earned the RSR for your governance and for standing as a first loss defender of the RToken.
Here is a tutorial on How to stake your RSR. In this example we will be using High Yield USD on Base to stake on.
Step 1:
Navigate Here: https://register.app/#/staking?token=0xCc7FF230365bD730eE4B352cC2492CEdAC49383e&chainId=8453
Step 2:
Select the amount of RSR that you want to stake and click “+ Stake RSR”, it will show you the max amount of RSR that you have in your wallet.
Step 3:
A Separate window will pop up, Click “Allow use of RSR”
Step 4:
Click Begin Stake of the amount of RSR that you selected.
Step 5:
And thats it, you are now a governor of High Yield USD on Base. You will see hyusdRSR in your wallet under this address: 0x796d2367AF69deB3319B8E10712b8B65957371c3
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