[RFC] Important Steps to be Completed Before Finalizing Release 3.4.0 Upgrade for bsdETH

Summary

This RFC aims to guide the bsdETH community through the next steps to finalize the bsdETH upgrade to the 3.4.0 smart contract release by Reserve Protocol, by completing the following prerequisites to finalize the upgrade.

  • All reward token balances should be claimed beforehand
  • All rebalancing and revenue auctions must run to completion

This RFC will not follow a normal governance cycle, this RFC is designed to notify the community of the required prerequisites to needed to be completed to finalize the upgrade to release 3.4.0. Once these steps are completed, the second IP to finalize the upgrade will be launched.

Abstract

bsdETH is in the last step of upgrading to the new contract release 3.4.0. Before the upgrade can be completed, governors must work with the community to ensure these two prerequisites are completed before executing the final upgrade. Once the prerequisites are completed, the second IP will go live to finalize the bsdETH contract upgrade to release 3.4.0.

Problem Statement

Upgrading bsdETH to release 3.4.0 is a two-step process. Step 1 upgrades the core contracts and registers new collateral plugins. After Step 1 is executed, a new TimelockController and Governance will administer the RToken. Step 2 cleans up old plugins. Before executing Step 2, there are two important prerequisites,

  • All reward token balances should be claimed beforehand.
  • All rebalancing and revenue auctions must run to completion.

Once these steps are completed, the upgrade to release 3.4.0 from Reserve Protocol can be completed after the second IP is executed.

Rationale

The community has already passed the initial IP to begin the upgrade to release 3.4.0. To finalize the upgrade, this last cleanup step is needed to complete the upgrade. Once the prerequisites are completed, bsdETH will be fully upgraded to release 3.4.0.

All reward token balances should be claimed beforehand

For bsdETH token holders, there are no additional reward tokens because collateral is cbETH / wstETH. There are no requirements for bsdETH holders to do for this step. This prerequisite has been completed.

All rebalancing and revenue auctions must run to completion

As bsdETH holders can see in the tab auction, the last necessary auction has been settles which is verifiable in this transaction.

With all auctions being settled and no required token balances to be claimed by bsdETH holders, bsdETH is ready to move forward with the second IP needed to finalize and upgrade bsdETH to release 3.4.0. Following this RFC, the cleanup step IP will be posted within the next 3 days to finalize the upgrade.

Risks

The latest smart contract upgrade 3.4.0 has been audited by Trust, however, there is always a chance of a bug as there are with all smart contracts. If a new auction appears or any have not run to completion then capital will be lost as the governor and timelock contract have been updated. If the final step is not completed, bsdETH will not complete the final step in order to fully be upgraded to release 3.4.0.