eUSD Quarterly Report Q3 2026
eUSD is an overcollateralised, yield-bearing USD stablecoin targeting DeFi’s risk-adjusted rate, with yield from its collateral basket distributed across protocol treasuries, fintech partners and stRSR holders.
The purpose of this report is to inform and educate the wider Reserve community on eUSD activity, while serving as a reference library for governance and on-chain data. A secondary aim is how this data can drive and direct action amongst stakeholders over the next quarter.
Summary
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eUSD market cap declined 2.4% from $23.31m to $22.75m, while total TVL increased 1.0% to $27.43m.
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Base market cap increased 11.6% to $17.49m and now represents 76.85% of eUSD supply. Mainnet supply declined 31.1% to $5.27m.
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FinTech balances increased 9.6% to $17.38m, driven by UGLYCASH which grew 10.3% to $16.22m.
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DeFi supply declined 24.2% to $2.35m. Curve Mainnet fell 57.6%, while Curve Base grew 15.0% and Aerodrome Base grew 58.3%.
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Basket yield increased from 3.32% to 3.91%. RSR backing increased from 18% to 23%, while stRSR yield declined from 8.1% to 6.0%.
eUSD Headline Metrics
eUSD market cap declined 2.4% during Q3 while total TVL increased 1.0%. The distribution between chains changed dramatically, with Base supply increasing 11.6% and Mainnet supply declining 31.1%. Base now accounts for 76.85% of eUSD market cap.
Basket yield increased from 3.32% to 3.91%, while FinTech yield increased from 2.99% to 3.52%. stRSR yield declined from 8.1% to 6.0%. RSR backing increased from 18% to 23% as the dollar value of staked RSR increased from $3.84m to $4.68m.
Current eUSD Collateral Basket
The current basket yields 4.20%, with Compound USDT V3 yielding 4.02%, Compound USDC V3 4.68% and Aave USDC V3 4.02%. The basket remains split equally across the three positions, with 66% exposure to USDC and 33% to USDT.
The basket remains concentrated across Aave and Compound. Work during Q3 on the eUSD Mandate & Methodology V2 and collateral basket review aims to improve protocol diversification, stablecoin diversification and scalability while maintaining competitive yield. The initial basket change proposal under this methodology can be found here.
Token Holder and Transfer Metrics
Mainnet holders increased 5.8% from 550 to 582, while Base holders increased 0.3% from 25,019 to 25,083. 90-day transfers declined 12.2% on Mainnet and 40.0% on Base. FinTech balances continued to grow despite lower transfer activity, with growth driven by larger eUSD balances rather than increased transaction frequency.
Supply Held by FinTechs
FinTech balances increased 9.6% from $15.86m to $17.38m. UGLYCASH increased its balance 10.3% from $14.71m to $16.22m, while Sentz increased 0.9% to $1.15m.
FinTechs now hold approximately 76% of circulating eUSD, up from 68% at the end of Q2. UGLYCASH alone holds approximately 71%. This continues the shift towards FinTech-led distribution. UGLYCASH remains the main source of eUSD growth and the largest source of holder concentration.
DeFi Integrations
Total eUSD supplied across tracked DeFi markets declined 24.2% from $3.10m to $2.35m, with the decline concentrated on Ethereum Mainnet. Curve Mainnet supply fell 57.6% from $1.84m to $782.5k, including a 77.4% reduction in eUSD/USDC and a 37.3% reduction in TriRSR. Morpho supply declined 14.0% from $503k to $432.6k.
Base moved in the opposite direction. Curve Base supply increased 15.0% to $166.2k, while Aerodrome supply increased 58.3% from $613.5k to $971.4k. Aerodrome growth came from eUSD/USDC concentrated liquidity, eUSD/USDC Basic Stable and eUSD/LCAP. Base now accounts for 76.85% of eUSD market cap, up from 67.22% at the end of Q2 and 60.75% at the end of Q1. DeFi liquidity is shifting towards the chain where most eUSD is held.
Governance
Ongoing - eUSD FinTech Revenue Share Updates
Summary: Biweekly proposals required in order to accurately pair FinTech revenue share against the eUSD balances they hold. The terms of this agreement are outlined in the original FinTech Revenue Share Programme proposal and the more recent Revenue Share Adjustment Proposal (Q1 2026).
Governors remained extremely efficient this quarter with all but one update proposals hitting quorum and passing the IP stage.
[RFC] Ratification of eUSD Mandate & Methodology V2 and Initial Eligible Collateral Universe
Discussion around the eUSD Mandate & Methodology V2 and the Initial Eligible Collateral Universe was reopened following the reversal on the decision to not develop Morpho V2 plugins for the yield protocol. The proposal received unanimous support from participating governors to progress to IP. However, subsequent technical constraints around on-chain ratification delayed progression. Work has since continued on combining the methodology ratification with an on-chain mandate update or a basket rebalance to bypass the issue and reduce governance load.
[RFC] Collateral Basket Change Proposal: Methodology v2 Alignment
An RFC proposing a new eUSD collateral basket aligned with Mandate & Methodology V2, addressing the current overconcentration in Compound and expanding the basket from its existing structure to five strategies. The proposed basket allocates **25% Aave USDT, 25% Compound USDC V3, 30% Gauntlet USDC Prime V2, 10% Gauntlet USDC Frontier and 10% Sentora PYUSD V2, producing an 80% Core / 10% Enhanced / 10% Opportunistic allocation. The proposed basket has a 4.56% blended yield, 4.10% FinTech yield and 4.26 diversification ratio, while increasing diversification across protocols and strategies and maintaining exposure across multiple stablecoin issuers.
Implications for Governors
eUSD market cap remained stable while its distribution continued to shift. FinTech balances grew 9.6% and now represent approximately 76% of circulating supply. UGLYCASH accounts for approximately 71%, increasing eUSD adoption alongside distribution concentration.
Base’s share of eUSD increased from 60.75% at the end of Q1 to 67.22% in Q2 and 76.85% in Q3. DeFi liquidity followed. Mainnet Curve liquidity fell 57.6%, while Aerodrome Base grew 58.3% and Curve Base grew 15.0%. More of eUSD’s secondary liquidity now sits on the chain where most eUSD is held.
Yield improved during Q3. Quarterly basket yield increased from 3.32% to 3.91%, with the current basket yielding 4.20%. RSR backing increased from 18% to 23%, while stRSR yield declined from 8.1% to 6.0%.