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Documentation Index

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Use this file to discover all available pages before exploring further.

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What is Reserve Folio?

Reserve Folio is a protocol for creating and managing portfolios of ERC20-compliant assets entirely onchain. Folios are designed to be used as a single source of truth for asset allocations, enabling composability of complex, multi-asset portfolios.
Folios are backed ERC20 tokens with permissionless minting/redemption and a semi-permissioned rebalancing mechanism designed for optimal execution under timelock delays.

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Key Features

Permissionless Minting & Redemption

Anyone can mint Folio tokens by depositing the required basket of assets, or redeem them to receive the underlying assets pro-rata.

Flexible Rebalancing

Dutch auction-based rebalancing system that enables portfolio adjustments while maintaining optimal execution and MEV protection.

Onchain Governance

Three-tier role system (Admin, Rebalance Manager, Auction Launcher) designed to work efficiently even with timelock delays.

Multi-Asset Support

Support for any ERC20-compliant token within the basket, with configurable weights and price ranges.

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How It Works

Folios operate through a sophisticated rebalancing mechanism:
1

Rebalance Initiation

The REBALANCE_MANAGER starts a rebalance, specifying target ranges for all variables including tokens, limits, weights, and prices.
2

Auction Opening

The AUCTION_LAUNCHER opens Dutch auctions within approved ranges to rebalance the portfolio. After a delay, auctions can be opened permissionlessly.
3

Bidding Period

Participants bid on token pairs at progressively better prices as the auction runs along an exponential decay curve.
4

Settlement

The auction completes, assets are exchanged, and the portfolio moves closer to its target allocation.

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Core Components

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Folio Contracts

  • Folio.sol: The primary contract representing a portfolio of ERC20 assets with auction-based rebalancing logic
  • FolioDeployer.sol: Manages deployment of new Folio instances with configurable parameters
  • FolioProxy.sol: Upgradeable proxy contract that checks upgrades with FolioVersionRegistry

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Governance System

  • FolioGovernor.sol: Time-based canonical governor for the system
  • GovernanceDeployer.sol: Deploys staking tokens and governing systems
  • StakingVault.sol: ERC4626 vault for staked tokens with multi-reward support and voting power

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DAO Infrastructure

  • FolioDAOFeeRegistry.sol: Manages ecosystem-wide DAO fees with a 15 bps minimum floor
  • FolioVersionRegistry.sol: Tracks approved versions of FolioDeployer contracts

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Role-Based Access Control

Folios implement a three-tier permission system:
Expected holder: Timelock of Slow Folio GovernorPermissions:
  • Add/remove assets from the basket
  • Configure fees (TVL fee, mint fee)
  • Set auction parameters (length, delay)
  • Close auctions and rebalances
  • Assign other roles
  • Deprecate the Folio
Expected holder: Timelock of Fast Folio GovernorPermissions:
  • Start rebalances with target ranges
  • End rebalances and auctions
  • Set rebalance control parameters (weight control, price control)
Expected holder: EOA or multisig (semi-trusted)Permissions:
  • Open auctions within approved ranges
  • Adjust auction parameters (basket limits, weights, prices)
  • End auctions and rebalances
  • Extend restricted period when active
The AUCTION_LAUNCHER is semi-trusted and can cause value leakage if malicious, especially with PARTIAL or ATOMIC_SWAP price control. Governance should carefully consider these settings.

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Fee Structure

Folios support two types of fees, both with a DAO minimum floor:

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TVL Fee

Per-unit time fee on Assets Under Management (AUM)
  • DAO minimum: 15 bps annually
  • Maximum: 10% annually
  • Causes supply inflation over time (discretely once per day)
  • If set to 15 bps, 100% goes to the DAO

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Mint Fee

Fee charged on minting new shares
  • DAO minimum: 15 bps
  • Maximum: 5%
  • Does not cause supply inflation
  • If set to 15 bps, 100% goes to the DAO
The 15 bps fee floor can be lowered by the DAO globally or on a per-Folio basis. Fee recipients only receive the portion above the DAO minimum.

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Supported Token Types

Folios support most standard ERC20 tokens with some restrictions:
Token TypeFolio SupportStakingVault Support
Standard ERC20✅✅
Missing return values✅✅
Flash mint✅✅
Revert on zero-value✅✅
Upward-rebasing✅❌
Downward-rebasing✅❌
Multiple entrypoints❌❌
Pausable/Blocklist❌❌
Fee-on-transfer❌❌
ERC777/Callback❌❌
Rebasing tokens may cause accounting discrepancies if rebasing occurs non-incrementally. Use with caution.

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Version History

1

v1.0.0 - Initial Release

Non-repeatable pairwise auctions. Basic Folio functionality with single-run auctions.
2

v2.0.0 - Repeatable Auctions

Added repeatable pairwise auctions, dust limits, and minimum mint enforcement.
3

v4.0.0 - Basket Auctions

Major upgrade with trusted fillers integration (CoW Swap), rebalance targets system, and overhauled auction mechanics. Changed from per-block to daily fee inflation.
4

v5.0.0 - Current

Full weight range support, max auction sizes, trusted filler restrictions, and name changing capability. Optimistic governance with slashing.

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Next Steps

Quick Start

Deploy your first Folio and learn the basics

Architecture

Deep dive into the system architecture and rebalancing mechanics

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Chain Assumptions

The protocol assumes block times equal to or under 30 seconds. Deploy only on chains meeting this requirement.

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