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The RD token

RD is the protocol's stablecoin. Standard ERC-20, 18 decimals, no admin keys.

How RD is created and destroyed​

Only the protocol can mint or burn RD. There is no admin mint, no upgrade key, no governance vote that can issue RD outside the protocol's rules:

  • Mint: when a borrower opens a trove or borrows more from an existing trove, the branch's BorrowerOperations mints RD to that borrower. The protocol also mints 200 RD to the gas-compensation pool when each trove is opened.
  • Burn: when a borrower repays or closes their trove, RD is burned. When a redemption clears trove debt, RD is burned. When liquidations are offset against a Stability Pool, RD is burned from the pool.

Total RD supply is exactly equal to total outstanding trove debt across all branches (plus the small gas-compensation float). Every RD in circulation is backed by overcollateralized debt, typically at ≥110% of its value.

Transfer rules​

RD is transferable like any ERC-20, with three guarded recipients to prevent accidents:

  • You can't transfer to the zero address.
  • You can't transfer to the RD contract itself.
  • You can't transfer directly to any branch's StabilityPool, TroveManager, or BorrowerOperations. Those contracts have explicit entry points (provideToSP, repayRD, etc.) that handle their own accounting.

Everything else works: wallet-to-wallet, wallet-to-DEX, wallet-to-arbitrary-contract.

How to acquire RD​

Three ways:

  1. Mint by borrowing. Open a trove against collateral and mint RD against it. You're paying borrow interest on the debt; the RD is yours to use. See Open a trove.
  2. Buy on a DEX. RD trades on the Balancer pool that the MarketOracle uses for the controller's price feed, and likely on other AMMs. Spot price moves with supply and demand.
  3. Be paid in it. Same as any other ERC-20.

What's RD worth?​

RD targets $1. The protocol maintains that target through redemption arbitrage and an adaptive interest rate; in extreme conditions, an internal price called par can also be adjusted within $0.85–$1.20. See How RD stays near $1 for the full picture.

Hard floor: redemption. Any holder can exchange RD for collateral at par (normally $1) minus a small fee. If RD trades meaningfully below par on the open market, that's an arbitrage opportunity, and the trade closes the gap. See Redemption.

Contract addresses​

The RD token is a singleton deployed once per network. See Deployed addresses for the address on each network.

What RD is not​

  • Not USDC-style. No issuer, no off-chain reserves, no whitelist, no blacklist.
  • Not algorithmic-only. Every RD is backed by collateral locked in a trove. There's no "expand supply at will" lever.
  • Not yield-bearing by holding. Holding RD is like holding a stablecoin, value comes from price stability, not from accrued yield. You earn yield by depositing into a Stability Pool, providing liquidity, or lending RD externally.
  • Not subject to a bootstrap blocklist. Transfers work from day one. What's disabled for the 14-day bootstrap window is redemption: borrowing and repayment are unaffected.

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