🏦Reserve Fund

If there is ever an extended period of negative funding rates, the Reserve fund will be deployed to cover those costs. Additionally, the Reserve fund may also be deployed if USDv experiences a sustained depegging event.

The reserve fund is funded by a percentage of protocol revenues. The percentage can change over time, responsive to the relative sizes of the Solomon protocol AUM and the reserve fund itself. Additionally, funds raised through private placement may be used to bootstrap the reserves initially.

The assets in the fund will initially be only stablecoins.

Reserve Custody

The Reserve funds will be held in a 3-of-5 Squads multi-sig.