[RFC] - Introducing eleosUSD


Eleos USD (eleosUSD) is a decentralized yield-generating token initially pegged to the US Dollar. Eleos USD provides convenient access to a diversified range of DeFi protocols. EleosUSD is linked to the Eleos Foundation, a token designed for charitable giving. As with all asset-backed currencies issued on the Reserve protocol, eleosUSD’s design is to be overcollateralized with verifiable proof of reserves available on-chain.

In this RFC, we will provide an overview of eleosUSD. We strongly encourage the community to ask questions and share their suggestions. Also, we would appreciate any help with the development of this Rtoken. If you would like to contribute to the success of this product, please reach out to me on Twitter @eleos_token, Telegram @eleosfoundation, email at EleosFoundation@outlook.com or visit us at https://www.eleostoken.com/.


What is the mandate?

A decentralized token that provides convenient access to DeFi yields while also incentivizing members who support eleosUSD by staking RSR. Governance should aim to take low to moderate risk to return consistent growth.

Why is that the mandate?

Broad enough to capture the right risk to reward ratio, but narrow enough to focus on a specific market.


Who is the deployer?

I am Paul, and I created the Eleos Foundation. The goal of the Eleos Foundation is to make a wallet that generates passive earnings, that is then able to be voted on by the Eleos community and distributed to charities. I am an avid investor and developer within all things crypto. I truly believe that digital currencies, such as eleosUSD and Eleos, can help make a change in the world.

Why did I decide to deploy the RToken?

One of the goals at Eleos Foundation is to invest in yield generating items that will help increase and build a sustainable wallet utilized for charitable giving. There are many options that we have looked into, but we have found nothing quite like Reserve’s RToken.

RToken offers a decentralized yield generating token that is influenced by the community. This token will distribute its profits to holders and RSR stakers, and organically grow the supply of eleosUSD over the long term.

What’s in it for me?

By using eleosUSD, holders will have access to DeFi through a single token. EleosUSD can be joined with other protocols in liquidity pools to further advance the RToken. Governance allows the community to dictate the direction of the token. Eleos Foundation’s charity and reserve accounts will benefit from growth receiving a total of 10% of the rewards. Eleos Foundation’s wallet will be used for charitable giving. Eleos’s Reserve account will have access to funds for marketing, general maintenance and other expenses. We can all benefit from eleosUSD, even the DeFi protocols using eleosUSD.

Collateral Asset Backing

What does the initial collateral backing for this RToken look like?

  • 50% AAVE USDC
  • 50% Compound USDC

Why was this collateral backing chosen?

These collateral assets were chosen due to the providers being well established and the highest yield options at the time of eleosUSD’s creation.

Should governance keep the collateral backing as it is or update it whenever it can?

As there will be growth within the ecosystem, eleosUSD is encourages members to review and participate in governance to update the collateral basket to assets that would benefit all holders.

What is the estimated APY with the initial collateral backing?

At the time of writing this response, 9.19% APY.

Revenue Distribution

What will the initial revenue distribution look like?

  • 70% - eleosUSD Holders
  • 20% - RSR Stakers
  • 5% - Eleos Foundation - 0x7203B48E68cad7fc3bd3B8e8cC4Bb36DEc425059
  • 5% - Eleos Reserve - 0xc5Cb67C8324704a552e61254a5d872E9b4CbDE5E

Why was this particular distribution chosen?

The distribution chosen will to provide a majority of yield disbursement to eleosUSD holders. RSR Stakers will receive distributions to reward them for their contribution and dedication to RTokens, and supporting governance.

Product Differentiation

How does this RToken differ from competitors?

  • Dynamic basket management by RSR stakers, who are incentivized to manage it properly.
  • RSR default protection up to a certain amount.
  • Competitive yield.
  • Prioritizes the use of decentralized stablecoins in the collateral basket.
  • Yield rewards distributed to Eleos Foundation will be for charitable giving.

Why will people use this RToken?

  • Decentralized yield producing token.
  • Earn yield for you, and help others and charity in the process.
  • Eleos was created for charitable giving.

Go To Market

Who do you see as the early adopters and advocates of this RToken?

  • DeFi protocols wanting liquidity growth.
  • DeFi Farmers.
  • RSR Stakers in eleosUSD.
  • Growing capital while directly contributing to a charity fund.

We are always open to ideas and suggestions. Please let us know.

What does success look like for this RToken?

  • A highly liquid Rtoken that can easily be minted and traded.
  • Growth on DeFi platforms with different liquidity pairs.
  • Creating a sustainable donation account where yield can help others and charities.

Why was this RToken name chosen?

In Greek mythology, Eleos personified charity and mercy. eleosUSD is the second part of the Eleos Foundation, which is a yield producing token that will benefit holders and grow a sustainable account for giving.

What does the logo look like?
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Why was this logo chosen?

A simple logo designed by AI that represents a classic symbol for money.

What does the brand represent?

The brand is the embodiment of a classic design to symbolize money, that has similar but different characteristics to the RSR symbol, which is purely coincidental but fitting as Eleos was researching into DeFi platforms and discovered Rtokens just after the design was created.

Call To Action

What is expected from the RToken’s governors?

Governors should want to align with the above-referenced goals of Eleos. The more successful Eleos will become, the more aid will be provided to charities. Eleos wants all of us to succeed.

What can the community do to make this RToken a success?

Get involved, support eleosUSD. Mint, Stake, and provide liquidity, if you feel moved to. We are all here for one another.

Please share any thoughts or ideas that you have about this RToken in the comments below.


This eleosUSD asset sounds similar to the features of USD3 and hyUSD and other yield bearing stablecoins, passive yield to holders. Good idea, but crowded space. Differentiation in goto market or partnerships may be essential.

What is the Eleos Foundation’s expertise and traction that could help eleosUSD outperform market alternatives?


Thank you for this well-formatted RFC. I added the correct formatting to the title.

I agree that the collateral basket is very similar to other rTokens. How do you plan to differentiate here and turn this into a net-positive for the rToken community and the stablecoin space at large?


Thank you for your comments. One factor that sets eleosUSD apart is that we will use rewards to provide to charities.

The following will set us apart from other flatcoins.

If possible, we would like to add a bullet point to the How does this RToken differ from competitors section. If this reply is sufficient, then please disregard our request.

•Airdrop of 3% of yield from each reward redemption period.

A) Holders of eleosUSD > $25 USD in value.
B) A holders snapshot csv will be uploaded to Twitter when winners are announced.
C) Three addresses will be selected using Grok AI, and posted with holders csv.
D) Airdrops will be sent from the Eleos Reserve account.


Interesting proposal, I think the charity donation aspect will set it apart enough from other rTokens currently on the market but agree with James’ and Raphael’s points above, a GTM strategy and partnerships will be crucial to get it known amongst the right audience.

My questions are around the revenue distribution and collateral basket composition. You have proposed a basket comprised of 100% USDC which I know will be a cause of concern for some of the rToken tribe. Have you considered this or thought about any other assets to spread the risk?

Also 20% to RSR stakers would put it as the highest revenue share to stakers out of any of the established rTokens on the market the closest would be hyUSD on Base and USDC+ which both have 24% overcollateralisation with 16% and 10% to RSR stakers respectively. Obviously this is ultimately up to you and will depend on conversations you’ve had with partners and potential holders of the rToken but with less risky assets in the collateral basket I wonder if this could be dropped to 10-15% with the hopes of a similar over-collateralisation ratio as the two mentioned above. I wonder if an allocation such as this will make it more attractive to hold given the higher yield that could be allocated to holders/charity.

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Looking forward to following your journey! Welcome :fire:


Thank you for the feedback. I have sent to governance and this update should be reflected soon. We always encourage community input.