Reserve 🌐

Every $RSR unlock now comes with a burn 🔥 This plan comes directly from the community: @AmatorPatriae proposed tying unlocking to burning, which became the design of the final Burn Gauge: no schedule, no calendar... nothing released unless the protocol has burned RSR first. If the protocol burns nothing, nothing unlocks. RSR holders choose the ratio, with five positions on the gauge: → High burn: for every 1 RSR the protocol burns, 4 more are burned from the treasury. No unlocking. → Low burn: for every 1 RSR the protocol burns, 2 more are burned from the treasury. No unlocking. → Sustain: for every 2 RSR the protocol burns, 1 is unlocked from the treasury. → Low growth: for every 1 RSR the protocol burns, 2 are unlocked from the treasury. → High growth: for every 1 RSR the protocol burns, 4 are unlocked from the treasury. At the two burn settings the treasury shrinks and nothing is released. At the three growth settings, Confusion Capital can release more than the burn-driven amount, but treasury RSR is burned in exchange at that position’s ratio. An unofficial burn gauge simulator is available here: claude.ai/artifact/5UAT2smqK… @nnevvinn, Confusion Capital, ABC Labs, Best Friend Finance and every company Confusion Capital incubates sit these votes out; they won’t vote with the RSR they hold. The gauge is set by the RSR holder base. The community will vote on it every quarter by ranked choice, following the quarterly update call and report, so you can see where the business stands before choosing a setting. The first gauge vote is open now and runs seven days ↓ snapshot.box/#/s:reserveprot…

🎃 Happy Halloween to those who celebrate, and 🔥 Happy Burn Day for October! 51M RSR were burned this month. The Burn Gauge is at High Burn: for every 1 RSR the protocol burns, 4 more are burned from the locked treasury. Protocol burn: 10,347,063 RSR etherscan.io/tx/0xbb05cf5b6a… Treasury burn: 41,388,253 RSR (executes Nov 27) etherscan.io/tx/0x27443dd6ff…

Update on the Binance exploit and RSR: Binance confirmed the attacker drained one of its hot wallets and that it will cover all losses with company funds, including the stolen RSR. We've been in direct contact with Binance's team since our last update, and they've moved quickly and responsibly, confirming that they will be re-purchasing the missing 3.38B RSR promptly. New from Binance co-CEO @_RichardTeng's video update: • Binance has set aside over $6.34B of company funds to cover the stolen assets. About $5B of that is already held in the exact tokens affected (he named USDC, USDT, BTC, ETH and BNB). • It's buying the remaining assets through market and OTC channels. Because the Reserve treasury does not have an appetite to reduce its RSR position, in the case of RSR we believe Binance will acquire on the open market through a professional market maker. • Binance withdrawals are paused while the team rebuilds and retests its withdrawal system. It hopes to reopen them before Sunday. Until then, RSR on Binance can't be withdrawn. • A full proof-of-reserves report has been promised by Monday. That's where you'll be able to check that RSR balances are fully backed. We infer from this that the RSR re-purchase will be completed by Monday. • Binance is working with law enforcement, blockchain analytics firms, token issuers and other exchanges to trace and recover the stolen funds. On Reserve's side, nothing has changed since our last update. We'll keep monitoring and share more as Binance does.

Update on the Binance hot wallet exploit and RSR: The stolen RSR has been sold, Reserve’s contracts were not affected, and RSR holders don’t need to do anything. If you held RSR on Binance, follow @binance’s updates. They’ve said “Binance will cover all losses from the SAFU fund and the company’s funds. User funds are safe. We will also publish an updated Proof of Reserves once the remediation is complete.” We take this to indicate they intend to re-purchase all assets lost in the exploit, including 3.38B RSR, to make their users whole. However, we have not been briefed on the specifics of how Binance intends to cover losses and have not done any of our own financial analysis of Binance’s ability to absorb this loss. The attacker took 3.38B RSR from Binance. Between 8:53 and 9:08 PM ET on Oct 29, they swapped all of it on Uniswap v3 for 1,856 ETH ($4.1M). As far as we can see onchain, they no longer hold any RSR, though it remains possible that the onchain swaps included wash trades with obscured attacker-funded wallets. See: etherscan.io/token/0x320623b… Before the sale, we pulled Reserve treasury-provided onchain liquidity so it couldn’t serve as the attacker’s exit. It appears that arbitrage bots and other traders bought the RSR instead. RSR is immutable with no admin keys, so no one, including us, can freeze it. The RSR token and Reserve protocol contracts were not affected. Since the attacker apparently no longer holds RSR, we believe it can’t be used in bulk against Reserve DTF governance. We are continuing to monitor the situation for any potential cascading effects of so many tokens being stolen and sold at once. For now we do not see any cause for pausing any Reserve products, so everything remains in normal operation.

We’re aware of the suspected Binance hot-wallet exploit, which appears to include ~3.4B RSR. The RSR token and Reserve protocol contracts are not affected; this is an exchange custody incident. RSR is immutable with no admin keys, so no one, including us, can freeze it. We’re working with Binance, market makers, and exchanges to flag the attacker’s addresses, and monitoring RToken/DTF governance. For your Binance account, follow Binance’s updates. According to CZ, user funds are not at risk, indicating Binance will cover any losses. As a precaution, we’ve temporarily withdrawn Reserve-provided onchain RSR liquidity so the stolen RSR can’t be sold into it. Third-party LPs in RSR pools should consider doing the same.

The results are in, and suddenly it feels really hot in here... ethereum:0x320623b8e4ff03373931769a31fc52a4e78b5d70

Welcome! We’ve been providing portfolios on @base for years! Good to have you 🫡 base:0xcef8db49e456f872e288e1c042f916e9ced7c781 looks good here btw