- Title: [TEMP CHECK] - Add support for RPL on Ethereum v3
- Author: @Kene_StableLab - StableLabs, @marczeller - Aave-Chan Initiative
- Date: 2023-05-09
[TEMP CHECK] - Add support for RPL on Ethereum v3
References:
- Project: https://rocketpool.net/#stake-run-node
- Whitepaper: https://whitepaper.io/document/551/rocket-pool-whitepaper
- Github: https://github.com/rocket-pool
- Documentation: https://docs.rocketpool.net/guides/
- Dune: https://dune.com/drworm/rocketpool
- RPL: https://etherscan.io/token/0xd33526068d116ce69f19a9ee46f0bd304f21a51f
- Oracle: Ongoing integration via Chainlink.
- Governance forum: https://dao.rocketpool.net/
- Governance votes: https://vote.rocketpool.net/#/
- Twitter: https://twitter.com/Rocket_Pool
- Discord: https://discord.com/invite/rocketpool
Summary:
This ARFC presents the community with the opportunity to add RPL to the Ethereum v3 Liquidity Pool.
Motivation
Rocket Pool is Ethereum 2.0 staking. The protocol reduces ETH 2.0 staking capital and hardware requirements to increase Ethereum’s decentralisation and security. Rocket Pool lets customers stake trustlessly to a network of node operators to do this.
The Ethereum 2.0 base protocol requires 32 ETH, technical competence, and a machine with a CPU processor with four cores and a minimum clock speed of 2.80 gigahertz. Without a way to lessen the costs to admission for ETH holders, these restrictions would endanger decentralisation and network security. Even if consumers could stake, their ETH would be illiquid until a predefined lock-up period, which would degrade the staker experience. Rocket Pool users will be locked up until Ethereum 2.0 phase 2.
Isolation mode
Adding support for RPL on Ethereum V3 in isolated mode would allow RPL holders to borrow stablecoins by leveraging their RPL position, boosting the RPL stablecoin utlization rate and attracting new RPL Deposits.
Oracles
Ongoing integration via Chainlink.
Specification
What is the link between the author of the AIP and the Asset?
StableLabs & ACI have no link and are not compensated to present this TEMP CHECK proposal
Provide a brief high-level overview of the project and the token.
Rocket Pool is Ethereum 2.0 staking. The protocol reduces ETH 2.0 staking capital and hardware requirements to increase Ethereum’s decentralisation and security. Rocket Pool lets customers stake trustlessly to a network of node operators to do this.
The Ethereum 2.0 base protocol requires 32 ETH, technical competence, and a machine with a CPU processor with four cores and a minimum clock speed of 2.80 gigahertz. Without a way to lessen the costs to admission for ETH holders, these restrictions would endanger decentralisation and network security. Even if consumers could stake, their ETH would be iliquid until a predefined lock-up period, which would degrade the staker experience. Rocket Pool users will be locked up until Ethereum 2.0 phase 2.
RPL Token Ethereum Address: 0xD33526068D116cE69F19A9ee46F0bd304F21A51f
Explain the positioning of the token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?
RPL is the governance and utility token for RocketPool, as the governance token for a major decentralized liquid staking derivative protocol, RocketPool has solidified itself as a Protocol which is actively contributing to Ethereum’s decentralization by making Operating a Node easy and accessible. By supporting RPL on Aave V3 Ethereum we would create an alternative for RPL holders who wish to earn yield on their asset.
Non-collateral onboarding
Adding support for RPL on Ethereum V3 as a non-collateral asset would allow RPL holders to obtain a yield on their RPL holdings. Users will borrow RPL mainly to allow them to deploy mini-pools and start staking.
Provide a brief history of the project and the different components: DAO (is it live?), products (are they live?). How did it overcome some of the challenges it faced?
As it became evident that Ethereum would switch from a Proof-of-Work to a Proof-of-Stake consensus mechanism, David Rugendyke established Rocket Pool in 2016. A minimum of 32 ETH, some technical know-how, and a computer with a CPU processor with four cores and a minimum clock speed of 2.80 gigahertz would be needed to validate on the Ethereum 2.0 base protocol.
These obstacles would endanger the network’s decentralisation and security in the absence of a solution that lowered the admission barriers for ETH holders. Additionally, even if users were able to stake, their ETH would stay non-liquid until a predefined lock-up period had passed, which would worsen the stakers’ user experience. Users will be subject to his lock-up period until phase 2 of the rollout of Ethereum 2.0, even on Rocket Pool.
How is RPL currently used?
RPL is actively being used to power the RocketPool Protocol, the RPL mechanics are used in multiple key places to drive the protocol forward.
— rETH value is protected by node operators staking RPL as insurance for a proper service. In the event that node operators perform poorly, the staked RPL is used as insurance.
— The RocketPool Protocol also has Oracle DAO members who post RPL bonds as an assurance of good behavior.
— RPL is also used in RocketPool Protocol DAO Governance.
RPL is also being used to provide liquidity on Uniswap and Balancer
Emission schedule
RPL is distributed as follows 15% for Oracle DAO members who contribute a variety of Oracle data, 70% for node operators who stake RPL as insurance collateral, and another 15% for the Protocol DAO Treasury, which supports decentralized development.
Token (& Protocol) permissions (minting) and upgradability. Is there a multisig? What can it do? Who are the signers?
The RocketPool Protocol is owned and managed by the RocketPool Protocol DAO. The RocketPool DAO runs a Snapshot Subspace where they vote on Governance Proposals.
RPL Contract: 0xD33526068D116cE69F19A9ee46F0bd304F21A51f
The direction of the RocketPool protocol is shaped by the Rocket Pool Protocol DAO (pDAO), which is managed by RPL governance. A square root modifier transmits pDAO voting power from node operators’ effective staked RPL.
Within Rocket Pool, Node Operators may submit and vote on new Rocket Pool Improvement Proposals (RPIP). For RPL, the RocketPool DAO controls all admin actions.
Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)
Market capitalisation: $917,000,000
Decentralized exchange liquidity pools
Uniswap V3
ETH/RPL (20/80) - 0xe42318eA3b998e8355a3Da364EB9D48eC725Eb45
Social channels data (Size of communities, activity on Github)
Discord: 19,778
Twitter: 40.6K
Github: 115
Contracts date of deployments, number of transactions, number of holders for tokens
Date of Deployment: September 2017
Number of transactions: 196,206
Number of token holders: 8,351
Risk parameters
While we suggest the community to wait for the feedback from risks teams, we suggest the following risk parameters to start the conversation.
Symbol: RPL
Contract Address: 0xD33526068D116cE69F19A9ee46F0bd304F21A51f
| Parameter | Value |
|---|---|
| Isolation Mode | NO |
| Borrowable | YES |
| Collateral Enabled | NO |
| LTV | 0 |
| LT | N/A |
| LB | N/A |
| Debt Ceiling | N/A |
| Reserve Factor | 20% |
| Supply Cap | 3M |
| Borrow Cap | 2M |