Summary
This resubmitted proposal seeks to increase issuance and redemption throttles for ETH+, aimed at optimizing the experience for large-scale users. The initial submission did not pass quorum in the on-chain vote, but received significant support from the community, so we are pushing this forward for another vote. Please note, that the increase in the issuance and redemption is higher than the original proposal.
Background
Currently, the ETH+ issuance throttle is set to whichever is higher: 250 ETH or 5% of the ETH+ market cap. Similarly, the redemption throttle is determined by the higher value between 500 ETH or 7.5% of the ETH+ market cap. In discussions with large minters, the feedback we’ve received indicates that the current offering is too limiting because they wish to mint and redeem in as few transactions as possible.
Specification
| Throttle | Current Cap | Proposed Cap |
|---|---|---|
| Issuance | 250 ETH or 5% | 1,700 ETH or 10% |
| Redemption | 500 ETH or 7.5% | 2,000 ETH or 12.5% |
Rationale
The original vote was to increase the redemption to 625 ETH or 12.5% and the issuance to 500 ETH or 10%. Based on comments from the original RFC. Increasing the redemption and issuance throttle further could be prudent.
The current throttle settings are too restrictive. Whales are dealing with long wait times for minting and unnecessary gas fees. These limits worsen the customer experience for RToken issuance and slow down the growth of Total Value Locked (TVL). We need to adjust the issuance and redemption throttles to make the process smoother and to more easily integrate large users into Reserve.
Risks
Reserve has rigorous smart contract audits, from some of the best in the industry, particularly Trail of Bits. This significantly reduces the likelihood of any exploit from a bug. The issuance throttle safeguards against attacks during collateral defaults, exploiting RSR-funded recapitalizations. Given that ETH+ holds minimal $RSR collateral, it is less vulnerable to such exploits.
Conclusion
This proposal, with revised throttle limits, seeks to grow the issuance and redemption throttle further than what it was previously. By doing this, ETH+ will become a more attractive product for whales to invest in ETH+ with less friction. The community’s insights and opinions are invaluable in refining and validating these adjustments. Feedback is encouraged to ensure these changes align with the collective goals of enhancing functionality and user experience while maintaining robust security measures.
- I support the proposal to adjust the issuance and redemption throttle
- I do not support the proposal to adjust the issuance and redemption throttle