Published in


Introducing Ethos Reserve

Kicking off 2023 with a bang!

Ethos Reserve’s Dashboard UI

Managed CDP Vaults

Ethos Reserve is special because it can deploy its underlying assets to DeFi yield strategies, as well as manage their risk and liquidity block-by-block. Users can enjoy highly efficient $ERN loans while deposited assets are put to work in the lowest-risk environment possible. Yield generated by the protocol is directed back to $ERN stakers, who also benefit from liquidation income. This system allows the protocol to take advantage of Ethereum’s low-risk interest rates, resulting in a DeFi system that has the network effects of a liquid staking derivative with highly efficient lending and stable-asset yields built in.

Multi-Collateral Debt Management

While this may not seem so special, the way Ethos manages debt involves highly complex data structures that allow the protocol to isolate and liquidate multiple collateral types more efficiently than competitors. Additionally, assets can be redeemed right from the protocol, ensuring that users have a right to their assets no matter the state of market liquidity. This combination of features allows for extremely high LTV ratios and additional yield for users. It also removes the need for market-making, as the protocol will always swap under-peg tokens for collateral.

Self-Contained, 0-interest lending

Ethos Reserve is able to issue interest-free loans denominated in the Ethos Reserve Note, or $ERN. Instead of paying interest, users pay a small issuance and redemption fee, which is directed to $bOATH (Bonded $Oath) stakers. Because debt doesn’t continue to accrue after a loan is issued, users don’t need to worry about micro-managing their position and the protocol doesn’t need to worry about bad debt piling up. Issuance and redemption fees also allow $bOATH stakers to derive value from arbitrage and $ERN volatility.

Ethos Reserve’s Managed CDP System

So what is $bOATH?

Bonded Oath, or $bOATH, is both OATH and ETH, backed by a Balancer-powered 80/20 liquidity pool. $bOATH will not only earn all platform fees, but benefit from trading fees generated by Ethos’ incentive buyback and distribution strategies.

Ethos Reserve’s Yield Feedback Loop

In Conclusion…

The Ethos Reserve team has forged a sustainable path forward for decentralized stablecoin infrastructure, powered by $OATH. With extensive testing and a full audit (view here) now complete, the Ethos Reserve team is getting ready for a new age of DeFi stable assets. You can follow Ethos Reserve development @EthosReserve.



Gain insight from the Byte Masons team as they push DeFi to its limits. Follow us for sneak previews, opinions, and development updates from every department.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Justin Bebis

Smart Contract engineer focused on high-performance blockchain networks