Source: [Use Cases](https://sapio.network/docs/use-cases)

# Use Cases

A Sapio Reserve Token (SRT) represents a share of one reserve. Other uses depend on the reserve's assets, working software, and available markets.

## Hold a basket through one token

A holder can create SRT by depositing the required basket amounts. The holder can redeem SRT for a share of that basket.

The final redemption includes any small amounts left after earlier rounding.

This can reduce the work of managing each asset separately. Holders still face changes in asset value and risks from the assets and contracts.

[Tokens](https://sapio.network/docs/dual-token.md) explains the reserve claim.

## Take part in competition

Proposers stake SAPIO on eligible reserve additions. Each competition uses fixed reference prices to compare later performance.

The system benchmark represents the current reserve. Payouts depend on delivery, performance, and all competing positions.

A proposer can lose stake even after delivering the assigned assets. [Participants](https://sapio.network/docs/participants.md) explains participation and costs.

## Exchange SRT for one asset

The proposed MME would help users enter or leave a basket through one selected reserve asset.

It must complete every required trade for a basket exchange. If one trade fails, that exchange fails.

This route depends on enough assets being available for trade. [The MME](https://sapio.network/docs/ccmm.md) explains the proposed design.

## Use SRT for payments or collateral

Users and other protocols could accept SRT for payments, deposits, or collateral. Collateral is an asset that secures a loan.

These uses need acceptance, suitable reserve assets, and available markets. A reserve claim does not guarantee a stable market price.

## Software agents

A software agent could take part under the same competition rules as a person. It must meet the entry, stake, and delivery requirements.

An agent could also use reserve assets to pay for token-based services. This depends on service acceptance and a working exchange route.

## A broader reserve

The proposed Multi reserve could hold several sector baskets and other assets. It forms part of the [master-key vision](https://sapio.network/docs/master-key.md).

Competition does not guarantee forecasting skill, a better reserve, or adoption. These outcomes need separate evidence.