Thanks for taking the time to dive into the Reserve Protocol and write this proposal @signal.
I’m encouraged by this proposal for a number of reasons:
- The improvements to basket decentralisation and liquidity depth while maintaining a similar yield profile to the previous incumbents cbETH and wstETH
- The view or llama risk that rETH is a well-rounded LST product
- The fact it’s already included in the ETH+ collateral basket
I do however have two concerns:
- While we have the rETH plugin live on mainnet, this isn’t live on Base. For the past year, given the volume of integration request and the limited bandwidth, asset issuers that want to benefit from inclusion in RToken baskets have developed their own collateral plugins themselves. I will link the relevant docs below. The core team will support through the audit process and finally complete back-testing in house prior to whitelisting.
Would the Rocket Pool team be happy to develop this plug for rETH to be included in the bsdETH collateral basket?
- I appreciate the additional incentives you have proposed via the Star Project however feel that 0.05% is rather low and won’t sweet the deal enough to move this through governance at pace. Please see the ETHx proposal from Stader where they supplemented the yield from 3% to 5% for the first 90 days. I feel something along these lines would more favourable to RSR stakers.
With regard to basket allocations i’m hesitant to reduce wsuperOETHb given it’s yield profile and liquidity depth so i’m more in line with option 2, dependent of course on any additional incentives you can offer.
Relevant docs for collateral plugins: