Proposal: Add support for rETH Token

Governance New Asset
22

@MarcZeller, @Alex_BertoG, see below for the additional information requested. This was co-written by the OP here @AmethystWizard and @langers (General Manager at Rocket Pool).

Let us know if you have any questions or need any additional info. We’d love to see rETH get listed and believe it would be a strong value-add for both Aave and the health of the Ethereum network. :pray:

Sentence Rational

The Rocket pool community would love AAVE users to support the listing of rETH as a collateral asset.

rETH is the only liquid staking token that prioritizes decentralization of staking pool operators. Onboarding rETH into AAVE would benefit both communities and Ethereum as a whole as rETH helps to democratize network validation and promotes decentralization of Ethereum staking.

References

Link to:

Specifications

  1. What is the link between the author of the AIP and the Asset?
  • Co-authored by Darren Langley, General Manager of Rocket Pool core team.
  1. Provide a brief high-level overview of the project and the token
  • Rocket Pool is the first truly decentralized Ethereum staking protocol.
  • Rocket Pool provides a liquid staking experience for Ethereum stakers; they do not need to run a validator, and they can contribute any amount of ETH
  • rETH is a redemption token representing staked ETH.
  • The rETH liquid staking token accumulates value against ETH over time.
  • Simply swapping ETH for rETH (or buying it on a secondary market) provides access to Ethereum staking rewards.
  • Without a stake pool service, only wealthy network participants who meet the 32ETH threshold are rewarded for validating transactions.
  • Rocket Pool democratizes participation in network validation by providing a service which lowers the collateral threshold.
  • Abstracting staked ETH as rETH participants are able to retain commodity properties of their stake (transfer of ownership).
  1. Explain positioning of token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?

  • rETH is a productive asset it appreciates in value over time based on the rewards generated by Rocket Pool node operators… Wherever ETH is presently used as collateral, rETH would make a better collateral since it accrues the staking reward in addition to the underlying ETH value.

  • rETH is based on Ethereum staking returns and has a relatively low counterparty risk compared to other yield bearing tokens.

  • rETH is a good long term holding collateral but many people want the option to access the value now and so want to use it as collateral for loans.

  • rETH could be used in leverage and hedge trading strategies by borrowing/lending in Aave.

  • rETH is a standard ERC-20 token and does not rebase and so it should be technically easier to integrate into Aave.

  1. Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?
  • Rocket Pool has been active in the Ethereum community for over 5 years.
  • The Rocket Pool protocol went live on 9th November 2021. It was a staged rollout with full unlimited opening on 22 November 2021.
  • Since then it has staked over 189k ETH across 1,200+ individual node operators operating in 84 geographic locations
  • rETH supply has grown to 89k rETH
  • The Rocket Pool protocol has a two DAO structure. More information on the Rocket Pool DAOs can be found here: Rocket Pool — Staking Protocol Part 2 | by David Rugendyke | Rocket Pool | Medium
  1. How is the asset currently used?

rETH is used as liquidity in a number of platforms on layer 1 and layer 2:

  • Uniswap
  • Balancer
  • Curve
  • Bancor
  • Zigzag

It is also used in yearn trading strategy vaults and in Alchemix as lending collateral.

  1. Emission schedule

rETH is only minted when stakers deposit ETH into Rocket Pool for staking.

  1. Token (& Protocol) permissions (minting) and upgradability. Is there a multisig? What can it do? Who are the signers?
  • rETH is minted when stakers deposit ETH into the Rocket Pool deposit pool and rETH is burnt when stakers withdraw their ETH.
  • The Rocket Pool contracts do not have permissions that grant administrators mint/burn capabilities.
  1. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)

  • Market Cap: $165m

  • Supply: 89,890

  • Holders: 3,832

Exchanges:

  • Uniswap
  • Curve
  • Balancer
  • Bancor

Further information here: Rocket Pool Explorer

  1. Social channels data (Size of communities, activity on Github)
  1. Contracts date of deployments, number of transactions, number of holders for tokens

rETH token

Date deployed: 30th Sept 2021

Contract address: Rocket Pool: rETH Token | Address 0xae78736Cd615f374D3085123A210448E74Fc6393 | Etherscan

Holders: 3,883

Transfers: 15,512

Technical Specifications

A comprehensive technical analysis has been conducted by the Maker DAO technical team here is their report:

Security Considerations

Our smart contracts have been independently audited by 3 best-in-class audit firms:

Risk Analysis

A comprehensive risk analysis has been conducted by the Maker DAO risk team here is their report:

​

9 Likes