# Allowed Virtual Reserves

In order for trading through Virtual Pools to be possible, the pools can accept certain tokens as reserves for a limited scope. The Approved Virtual Reserve ("ART") list is maintained on the protocol level, and applies to all the VirtuSwap pools. The list is governed by VirtuSwap DAO and can be updated from time to time, adding or removing certain assets.&#x20;

By VSP#3 which was approved on October 12, 2023, in order for a token to be accepted as Virtual Reserve, it should comply with two conditions:

1. There is at least one liquidity pool with the token as a native asset on VirtuSwap DEX.
2. The token should be whitelisted successfully. By VRS#3, the token market cap must be higher than 20m US$.

It should be noted that decisions to add or remove a token from the ART list by a normal VirtuSwap DAO Parameter decision. The proposal should include any relevant information that indicates the risks the token is exposed to (VSP#3).

It should also be noted, that by VSP#3, holding of virtual reserves by liquidity pool is limited to a maximum of 2% of the total pool value. A change in the threshold can be implemented by an Ownership proposal by VirtuSwapDAO.

In future versions of the protocol, pool-level governance of allowed reserves will be added, so that LPs of each pool can make decisions on the reserve tokens they are willing to accept.

For more information, please see VSP#3: Approved Virtual Reserve List here: [Snapshot vote: VSP#3](https://snapshot.org/#/virtuswapdao.eth/proposal/0x50cd8ebfaf950288a7f7eab9717634f24e273a60594bca6960f24a3a16fbc55b).


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