Reserves and Peg Stability

USDv is designed to track the U.S. dollar through a reserve-based stability model.

Each USDv is supported by a portfolio of dollar-denominated assets. The portfolio is managed to support onchain liquidity, approved redemptions, market operations, and the income used to fund rewards.

Reserve Portfolio

USDv reserves include USDG and USDC. Solomon is adding direct exposure to short-dated U.S. Treasuries, which is expected to become the primary reserve component. Stablecoin reserves provide liquidity for onchain access and settlement.

Reserve composition can change based on supply, redemption needs, market liquidity, counterparty access, risk management, and program requirements.

How the Peg is Supported

• Reserve assets: dollar-denominated assets are held against outstanding USDv.
• Direct mint and redeem: approved counterparties can create or redeem USDv under defined operational controls.
• Onchain liquidity: supported markets allow users to buy and sell USDv.
• Liquidity management: Solomon manages reserve liquidity and market operations based on how USDv is used.

These mechanisms are designed to keep USDv liquid and close to one U.S. dollar. They do not guarantee that USDv will always trade at exactly $1 in every market.

USDv is not a bank deposit or a money market fund share, and it is not guaranteed by a government agency.