> For the complete documentation index, see [llms.txt](https://docs.tropicalwater.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tropicalwater.xyz/overview.md).

# Overview

> How it works: Deposit USDC → receive yield-bearing vault shares that compound every second → redeem fee-free after a lockup period, or exit instantly at any time for a small fee. Vault shares are LayerZero OFT tokens and can be bridged across chains while yield state is automatically synchronized.

## Where It Fits in the Reservoir Ecosystem

The core Reservoir Protocol offers three products that share the same balance sheet, mint and redeem functionality, and architecture. The Opportunity Vault technology is a separate product provided by Tropical Water Management Corporation hosted on the Reservoir app targeting a higher yield return product for users.

```mermaid
graph TB
    subgraph RP["Reservoir Protocol"]
        direction LR
        rUSD["<b>rUSD</b><br/>Base Stablecoin<br/>1:1 USDC backed"]
        wsrUSD["<b>wsrUSD</b><br/>Liquid Savings<br/>Variable yield · No lockup"]
        trUSD["<b>trUSD</b><br/>Term Rolling Bond<br/>Higher yield + lockup"]
        rUSD -->|"savings"| wsrUSD
        rUSD -->|"term"| trUSD
    end
    subgraph VLT["Opportunity Vaults"]
        OV["<b>Agua Vault</b><br/>Variable yield · USDC-based · OFT cross-chain shares<br/><i>Provided by Tropical Water Management Corporation</i>"]
    end
    RP -.->|separate product| VLT
```

**Key distinction from core Reservoir Protocol products:** The Opportunity Vaults physically hold USDC. Unlike wsrusd and trUSD (which burns and mints rUSD), redemptions transfer real USDC from the vault balance. Accumulated early redemption fees stay in the vault as untracked surplus USDC.