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% |