As @reservoir_xyz unwound its Bera Chain positions, what's left in the reserve for $rUSD is ok. Here it is: We deduct $rUSD held in the reserve from the total circulation, which is a typical accounting treatment for treasury shares (companies holding its own shares). The remaining backing assets are in Morpho lending and Pendle $USDe derivatives. In Morpho Smokehouse, there's still exposure to $rUSD as collaterals, but it's immaterial. Recursive minting (which leads to a project holdings its own stablecoins) is a way to leverage and does not generate real yield. We are not supportive of it, but we maintain that this can be accounted for as well. So given that a protocol maintains transparency (and ideally a justification for recursive minting other than inflating TVL), we are not against it neither. Substack article updated: