> For the complete documentation index, see [llms.txt](https://docs.reserve.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.reserve.org/introduction/how-it-works.md). # How it works The Reserve project consists of a set of protocols, products, contributors, and initiatives, all built around a single belief: that everyone should be able to own and earn their share of the value of everything. ## Core components ### Reserve’s protocols The Reserve Index Protocol and Reserve Yield Protocol are the foundation that gives access to the value of everything. They define how assets are bundled, backed, redeemed, and transferred onchain. Assets governed by the protocols follow shared, transparent sets of rules, making it possible to hold diversified value directly. Everything in the Reserve ecosystem builds on this foundation. ### DTFs (Decentralized Token Funds) DTFs let anyone own and earn on everything. They are portfolios of onchain assets, managed by smart contracts. Some are designed to hold value steadily, while others are designed to generate yield. Together, they make it possible to hold diversified value as a single token. Today, DTFs are built from crypto assets. Over time, as more assets are tokenized, they can include stocks, bonds, commodities, and real estate. As tokenization expands, DTFs make it possible to hold increasingly broad representations of the world’s value. * **Index DTFs** let you own a share of everything * **Yield DTFs** let you earn on everything ### RSR (Reserve Rights) RSR is the token that allows anyone to own a share in the value of everything. It enables participation in DTF governance and returns a portion of protocol fees to RSR holders through token burns. *** ## Core contributors The Reserve project is supported by a set of core contributors, each focused on advancing the shared belief that everyone should be able to own and earn their share of the value of everything. ### Best Friend Finance (BFF) Best Friend Finance is the distribution arm of the Reserve project. It designs, builds, and distributes everyday financial products, including UGLYCASH, all powered by Reserve’s financial center and backed by the Reserve Protocol. Its role is to make asset-backed money understandable and usable through consumer-facing products. ### Confusion Capital (CC) CC supports the broader Reserve ecosystem. It funds public goods, backs ecosystem development, and supports initiatives that expand access, participation, and understanding across the network. ### ABC Labs ABC advances the technology underlying the Reserve Protocol. It builds and maintains the products, tooling, and safeguards that strengthen the protocol and make it reliable for long-term use. Together, these contributors support the protocol, products, and ecosystem required to make ownership of the value of everything practical at scale. *** ## Core initiatives Reserve project initiatives focus on education and alignment around asset-backed currency and long-term monetary infrastructure. * [**Monetarium**](https://reserve.org/monetarium/) convenes builders, economists, and policymakers to examine how asset-backed money could function in practice and at scale. * [**The Digital Securities Initiative**](https://www.digitalsecuritiesinitiative.xyz/) (DSI) works on regulatory and institutional alignment to support the adoption of asset-backed currency over time. * [**UGLYCASH**](https://ugly.cash/) is a Reserve project initiative for earning a share in the value of everything. It provides a consumer-facing way to earn, save, and hold value through asset-backed currency, extending the Reserve ecosystem into everyday financial use. These initiatives address the non-technical requirements of the project, recognizing that enabling people to own and earn their share of the value of everything depends on education, coordination, and institutional readiness as much as technology. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.reserve.org/introduction/how-it-works.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.