Title: [TEMP CHECK] Onboard RSR to Aave v3
Author: Reserve Protocol Core Team & ACI (Aave Chan Initiative)
Date: 2024-01-24
Summary
The Reserve Protocol Core Team proposes adding Reserve Rights (RSR) as an asset in AAVE V3 on Ethereum Mainnet. Reserve drives liquidity on AAVE lending markets through the underlying baskets of RToken collateral and demand for borrowing RSR will bring additional fees to AAVE. Reserve will also make available Curve ecosystem voting power to deepen GHO liquidity through a GHO-eUSD Curve pool.
Motivation
Reserve is a free, permissionless platform on Ethereum mainnet to build, deploy and govern asset-backed currencies referred to as “RTokens.” RTokens are always 1:1 asset-backed, allowing for permissionless minting and redeeming on-chain by users without the need for any middlemen. The Reserve Protocol launched on Ethereum mainnet in Oct 2022, Base in Oct 2023, and completed its fifth audit in Feb 2023.
RSR is the governance token for Reserve Protocol and can be staked on a particular RToken, where it has two roles:
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RToken Overcollateralization: Staked RSR receives a portion of the RToken collateral’s revenue in exchange for being the first capital-at-risk in the case of collateral default
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RToken Governance: Staked RSR proposes and votes on changes to the RToken’s configuration
RSR contract has been live on ethereum for 1.5 years, has undergone audits by Solidified, and the dev team recently burned the multisig Pause Transfer functionality, making it immutable. RSR currently has a marketcap of $139m.
Three of the RTokens already live on the protocol are High Yield USD (hyUSD) is a secure high yield savings dollar with up to 8% APY expected to outpace the rate of inflation in over 100 countries around the world. ETHPlus (ETH+) is a safety-first diversified ETH staking index with up to 4.5% APY. Electronic Dollar (eUSD) is a hyper-resilient stablecoin built to endure black swan events, recently proving itself during the run on Silicon Valley Bank.
Benefits of listing RSR:
An RSR lending market would fuel Reserve Protocol growth and TVL across Ethereum and Base networks. As the Reserve ecosystem expands, AAVE TVL grows because a portion of RToken collateral assets are held on AAVE lending markets for example, the largest RToken is currently eUSD ($17.7m TVL) which holds 50% of its collateral basket in USDC and USDT lending on AAVE.
Additionally, demand for RSR borrowing could create more fees for Aave.
Reserve Protocol is also open to providing seed liquidity for the asset.
Useful Links:
- Project: https://reserve.org/
- Protocol Documentation: Reserve Protocol Docs
- RSR Documentation: Reserve Protocol Docs | RSR
- Github/Source Code: Reserve · GitHub
- RSR Contract (Ethereum): Reserve Rights: RSR Token | Address 0x320623b8E4fF03373931769A31Fc52A4E78B5d70 | Etherscan
- RSR Oracle: Chainlink: RSR / USD Price Feed | Address 0x759bBC1be8F90eE6457C44abc7d443842a976d02 | Etherscan
- Dune Dashboard: https://dune.com/reserve-protocol/reserve-protocol-overview
- Blog: https://blog.reserve.org/
- Audits: Reserve has been audited 5 times, RSR was audited by Solidified
- Communities: Discord 3K, Twitter 111K, 104 GitHub stars
- RSR Price: CoinGecko, CoinMarketCap
Disclaimer:
This proposal is powered by Skywards. The Aave Chan Initiative is not directly affiliated with Reserve Protocol Team and did not receive compensation for creation this proposal.
The co-author is a team member of Reserve Protocol Team.
Next Steps
- If consensus is reached on this [TEMP CHECK], escalate this proposal to the Snapshot stage.
- If the Snapshot outcome is YAE, this proposal will be escalated to ARFC stage
- Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage
- If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal
Copyright:
Copyright and related rights waived under CC0.