[ARFC] Add RPL to Ethereum v3

Gauntlet supports listing RPL on Aave V3 Ethereum. The following table contains Gauntlet’s recommended initial parameters.

Risk Parameter Recommended Value
Isolation Mode NO
Enable Borrow YES
Enable Collateral NO
Borrowable in Isolation NO
Loan To Value N/A
Liquidation Threshold N/A
Liquidation Bonus N/A
Reserve Factor 20%
Liquidation Protocol Fee 10%
Borrow Cap 105,000
Supply Cap 105,000
Debt Ceiling N/A
Base 0%
Slope1 7%
Uoptimal 45%
Slope2 300%

RPL is the Rocket Pool governance token (distinct from rETH, Rocket Pool’s liquid staking derivative). RPL serves as a governance token for the Rocket Pool protocol and as collateral for node operators. Node operators are required to hold a certain ETH value in RPL, so they are incentivized to top up their collateral when RPL falls in value relative to ETH. This mechanism keeps the RPL price fairly highly correlated to ETH, though it is not pegged to the value of ETH.

We recommend the following parameters for RPL on Aave V3 Ethereum:

Isolation Mode - No
Borrowable - Yes
Collateral Enabled - No
E-mode - No

Supply and Borrow Caps

Supply Cap (in tokens) - 105,000 / Borrow Cap (in tokens) - 105,000
Our supply and borrow cap recommendations are set in accordance with Gauntlet’s borrow and supply cap methodology. We recommend capping borrow and supply at half of RPL’s average daily trade volume across DEXs and CEXs.

Liquidation Protocol Fee - 10%

Gauntlet recommends an LPF of 10%, matching the LPF for other similar assets.

Reserve Factor - 20%

Gauntlet recommends a reserve factor of 20% for RPL on Ethereum, matching the RF of most other non-stablecoins on Ethereum.

IR Curves

We recommend the same IR curves used for other protocol governance tokens on Ethereum, such as LDO, MKR, and AAVE.

Parameter Recommendation
Base Variable Borrow Rate 0%
Variable Rate Slope 1 7%
Optimal Usage Ratio 45%
Variable Rate Slope 2 300%
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