The product works. The token does not capture it.
Reservoir runs rUSD, a stablecoin with real TVL, and srUSD, its yield-bearing version. The problem for an investor is that the DAM token captures almost none of that value: there is no live fee-to-token mechanism, the balance sheet is opaque, and roughly 80% of supply is still to come.
What it is
Reservoir issues rUSD, a stablecoin, and srUSD, a yield-bearing version with about $101M in supply and five Halborn audits. There is a real product here with real usage, in the $200-250M TVL range, down from a 2025 peak.
The token problem
The trouble is the DAM token. There is no live mechanism routing protocol fees to it, so it captures essentially none of the value the product creates. On top of that, the reserves can hold derivatives and the balance sheet is opaque, and only about 20% of supply is circulating, leaving an 80% overhang that weighs on price as it unlocks.
EXPECTED VALUE FOR THE TOKEN IS NEGATIVE-TO-FLAT, THE VALUE IS IN USING srUSD NOT OWNING DAM
srUSD is real: about $101M supply and five Halborn audits. The product side is functioning.
There is no live fee-to-token mechanism. DAM does not capture the protocol's economics today.
About 80% of supply is still to come, and the reserves can hold derivatives on an opaque balance sheet. That is the bear.
The call
Grade CCC, borderline. Optically cheap and a value trap. The honest conclusion is that the expected value lives in using srUSD, not in owning DAM. It would take a credible fee-accrual mechanism going live, plus a top-tier audit of the reserves, to revisit. Until then the token is a pass.
Confidence and what we could not verify
Moderate. The product metrics are sourced; the balance-sheet opacity and the absence of a token-accrual mechanism are the disqualifiers, and both are clear.