Reserve is a DeFi protocol that allows for the permissionless creation of tokens, or RTokens, backed by a custom selection of other ERC20 tokens, chosen by the issuer. So far, there have been four different RTokens issued on Reserve, three pegged to $USD namely, $eUSD, $hyUSD, and $RSD, and one pegged to ETH namely, $ETH+. While the following documents aims in the first place at giving a high-level overview of how the protocols works and the potential risks associated with it, the specific purpose is to better assess the ETH+ RToken for potential yield opportunities.

OETH is a self-custodial, interest bearing ETH derivative launched by the Origin Protocol (the same protocol behind oUSD) in May 2023. The token can be minted and redeemed though the ‘Origin Dapp’ by supplying one of the following tokens: ETH, wETH, frxETH, stETH, rETH. The protocol generates yield by deploying collateral assets through diverse DeFi strategies. Yield generated is then utilised to mint more OETH which is distributed to holders as a form of rebasing.

This document provides a comparison of the two Auxo Reward Vaults: Active Rewards Vault (ARV) vs. Passive Rewards Vault (PRV). It aims to provide a rundown of the target user profiles for each Vault, a high-level comparison of the Vaults, with respect to specific features, and finally, some example scenarios to help illustrate the differences in practice.

Auxo Passive Reward Vault Token (PRV) is a transferable derivative token built on top of the Active Reward Vault.

Auxo Active Reward Vault Token (ARV) is a non-transferrable ERC-20 token that is minted by staking AUXO for a period of between 6 to 36 months.

Auxo DAO seeks to overcome the issue of dilution that many capital allocators have to contend with when seeking yield. This is achieved through the token's strictly controlled policy of expansion and the absence of any mechanism of inflation versus the net asset value (NAV) of the treasury.

There are many ways in which one can generate yield in the crypto space: one can stake, lend, run a validator, delegate, provide liquidity, etc.