Proof of Usefulness Report

Reserve

Analysis completed on 2/16/2026

+530
Proof of Usefulness Score
Industry Mainstay

Reserve is a well-established DeFi protocol with significant market capitalization (~$100M) and Total Value Locked (~$125M), offering innovative decentralized stablecoin and index solutions. However, the submission quality was exceptionally poor, featuring verifiable falsehoods (claiming 'everyone' as the audience and 'most people have used my product' for traction). While the project's real-world utility and technical sophistication are high, the score is heavily penalized by the lack of credible evidence provided in the submission itself, which failed to accurately represent the project's actual success.

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Score Breakdown

Real World Utility+21.25
Audience Reach Impact+6.00
Technical Innovation+13.50
Evidence Of Traction+9.38
Market Timing Relevance+8.50
Functional Completeness+0.25
Subtotal+58.88
Usefulness Multiplierx0.90
Final Score+530

Project Details

Project URL
Description
Reserve’s mission is to create a more accessible financial system through decentralized index technology. We believe money should be an index of the world’s assets: stocks, bonds, gold, real estate, and more. To that end, we’re building technology that allows anyone to permissionlessly create and own Decentralized Token Folios (DTFs) — baskets of tokenized crypto assets that work like traditional ETFs. Reserve is currently crypto’s #1 index platform in the industry, and to date we have built two protocols to make our vision a reality: The Reserve Yield Protocol lets anyone create yield-bearing stablecoins backed by baskets of digital assets. These stablecoins are always fully backed, are overcollateralized in case of black swan events, and can be minted or redeemed without intermediaries. Yield DTFs on Reserve give users access to the yields and benefits of DeFi by holding a single token. The Reserve Index Protocol powers DTFs which — because they’re on the blockchain and harness the power of smart contracts — are like indexes with superpowers. Users can instantly create or redeem their positions, trade 24/7 with real-time transparency, and freely compose their DTFs using any tokens — all without requiring permission from any centralized entity. Index DTFs on Reserve enable users to get broad market exposure or buy into narratives in a single click. The Reserve Yield Protocol launched on Ethereum mainnet in October 2022. Reserve is a project of ABC Labs.

Algorithm Insights

Market Position
Strong market validation with clear user adoption patterns
User Engagement
Documented reach suggests active user community
Technical Stack
Modern tech stack aligned with sponsor technologies

Recommendations to Increase Usefulness Score

Document User Growth

Provide specific metrics on user acquisition and retention rates

Showcase Revenue Model

Detail sustainable monetization strategy and current revenue streams

Expand Evidence Base

Include testimonials, case studies, and third-party validation

Technical Roadmap

Share development milestones and feature completion timeline