What is Vault (Reserve Protocol)?

The Reserve Protocol makes use of a vault that is used to stabilize the peg of the Reserve (RSV) stablecoin and to maintain a balanced vault ratio. This is accomplished by adding and subtracting RSV, RSR, and collateral tokens when the peg of RSV drops below or rises above its equilibrium price of 1 U.S. dollar between the range of $0.98 and $1.02. Further, when the vault ratio exhibits appreciation and depreciation rates of less than +0.1% or -0.1%, holders of RSR purchase or sell RSR in exchange for tokenized assets to help maintain the equilibrium of RSV.