### Reserve Protocol Key Features (part.1)

1. **Transparency and Decentralization**:

- **Transparency**: The Reserve Protocol allows users to see all reserves on-chain at all times, providing real-time visibility into the backing of the stablecoins issued by the protocol. This transparency ensures that users can verify the stability and security of their assets[1].

- **Decentralization**: Autonomous smart contracts remove the need for intermediaries, enabling users to verify public code and corroborate proof of reserves. This creates a trustless environment where users have control over their assets through governance mechanisms.

2. **RTokens and RSR Tokens**:

- **RTokens**: These are stablecoins backed by a basket of yield-bearing assets and overcollateralized by RSR token stakers. RTokens can be used as stablecoins, on-chain savings accounts, or tokenized indices. They are designed to be stable and secure, with proof of reserves available on-chain 24/7.

- **RSR Tokens**: Reserve Rights (RSR) tokens are used for governance and overcollateralization. RSR holders can stake their tokens to any RToken, providing additional collateral and earning a share of the RToken's yield. RSR tokens also give holders the power to vote on governance proposals.

#rwa #rsr