Reserve: Enabling Onchain ETFs

Key Insights

• Reserve’s CF Benchmarks (CFB) Large Cap Decentralized Token Folio (DTF) tracks the CF Kraken Large Cap Index (CF Large Cap Index). The CFB Large Cap Index is a liquid, investible benchmark portfolio index designed to track the performance of 95% of the total market capitalization of publicly traded digital assets.
• Reserve employs separate mechanisms for its Yield and Index DTFs. Yield DTFs rely on staked RSR acting as first-loss capital, while Index DTFs do not. Instead, Index DTF creators can select a given ERC-20 token that can be locked to gain voting power over the Index DTF’s parameters.
• The CF Large Cap DTF utilizes a rebalancing process that is significantly faster than the default governance cycle. The DTF uses onchain Dutch auctions, permissioned guardian roles for security, and a planned integration with CoW Swap to ensure tracking of the CF Large Cap index.
• The CF Large Cap Index DTF is backed by deep liquidity: Operating on Base, the DTF sources CEX liquidity through Universal's wrapped assets, which are custodied 1:1 at Coinbase Prime.

Primer

Reserve (RSR) enables onchain index investing through Decentralized Token Folios (DTFs), its open standard for tokenized portfolios. The platform supports two protocols: the Yield Protocol, which enables the staking of ERC-20-based RSR tokens to maintain a peg and earn yield from collateral, and the Index Protocol, which supports permissionless creation of tokenized indexes known as Index DTFs. 16 Index DTFs are already live and available on Ethereum and Base, with an upcoming deployment planned for Solana.