The present invention provides an allophanate polymer system made by a method comprising combining a neutralized polyol with a polyuretdione resin in the presence of a reactive reducer comprising a reducing agent and a tertiary amine catalyst to produce a clear-coat, and contacting the clear-coat with a basecoat comprising a tertiary amine catalyst. The reaction between the polyol and the polyuretdione will proceed after the reactive reducer reduces the viscosity of the one component clear-coat formulation to appropriate levels. The inventive allophanate polymer system is particularly applicable in providing coatings, adhesives, castings, composites, and sealants with good performance.