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0x9ca72f03…71a3sent to0x239cdcbe…f981·#20,119,291·0x6afc2cdc…ac34ca
# [IP] Upgrade ETH+ to Release 3.4.0 [https://forum.reserve.org/t/rfc-upgrade-eth-to-release-3-4-0/750](https://forum.reserve.org/t/rfc-upgrade-eth-to-release-3-4-0/750) ## Summary This proposal recommends upgrading ETH+ to version 3.4.0 of the Reserve Protocol to keep its infrastructure up to date with the latest smart contract upgrades. This is a two-step process and will have two RFCs as well as two IPs. This first RFC and IP is the upgrade step to move ETH+ over to the 3.4.0 governance contracts. The second RFC and IP is a cleanup step and will be released after the execution of the first IP. Multiple steps need to be completed before the second IP can be executed. The second RFC will go over this in detail. **Required steps to be completed before second IP can be executed** - All reward token balances should be claimed - All rebalancing auctions must run to completion - All revenue auctions must run at least until all surplus balances are below the minTradeVolume ## Motivation Following the recommendation from [ABC Labs](https://myreserve.notion.site/3-4-0-Upgrade-7015f3efa3bd4c03a9b0de20e5dba834), this is a governance proposal to gather feedback from the community on whether there is an agreement to upgrade the ETH+ RToken smart contracts to the latest upgrade. ## Specification Draft instructions have been provided for upgrading ETH+ to release version 3.4.0 of the Reserve Protocol: #### Detailed Instructions: Reference: [Reserve Protocol Release 3.4.0](https://github.com/reserve-protocol/protocol/pull/1096) Upgrade Spell: [3.4.0 Upgrade Spell](https://github.com/reserve-protocol/protocol/pull/1134/files#diff-595dd5ecc5057f953763a4ffb710d00041c7e4f669f32fcca955b97b8afeda95) Governors Implementation Guide: [3.4.0 Upgrade Guide](https://myreserve.notion.site/3-4-0-Upgrade-7015f3efa3bd4c03a9b0de20e5dba834) #### Steps for Upgrading ETH+: | Description| Target Contract |Method | Data| |--------|--------|--|--| | Assign OWNER role to the spell| Main Contract Address | grantRole| OWNER_ROLE to <0xB1Df3a104D73FF86F9AAaB60B491A5c44b090391>| | Assign TIMELOCK_ADMIN_ROLE to the spell | Timelock Contract Address | grantRole | TIMELOCK_ADMIN_ROLE to <0xB1Df3a104D73FF86F9AAaB60B491A5c44b090391> | | Execute the upgrade spell | Spell Contract Address | castSpell | RToken Address <0xE72B141DF173b999AE7c1aDcbF60Cc9833Ce56a8> governor_address <0x239cDcBE174B4728c870A24F77540dAB3dC5F981> | ## Conclusion/Next Steps This RFC aims to begin a discussion on the pros and cons of upgrading the ETH+ contract to 3.4.0 release of Reserve Protocol, and when is the best time to integrate ETH+ as it is the largest RToken at a $57 Million market cap. 1. **Review upgrade** Governors should review the proposed upgrades carefully, ensuring they understand and agree on each step. 1. **Discuss proposal** Please express any concerns, queries, or suggestions related to this upgrade in the reply section. Do not hesitate to discuss on the discord for support or clarification as well. 1. **IP upgrading ETH+ contracts** With the completion of the IP, a new governance contract will be created with the 3.4.0 upgrade. 1. **Preparing for cleanup step for ETH+ contracts** With the completion of the first step, a second RFC will released to guide the community on the required steps needed to be completed in order for the second IP to be executed, completing the upgrade.
0x9ca72f03…71a3sent to0x239cdcbe…f981·#19,763,770·0x05bda45f…91c3fc
# Resubmission ETH+ Issuance and Redemption Throttle Changes (With Update) [https://forum.reserve.org/t/rfc-resubmission-eth-issuance-and-redemption-throttle-changes-with-update/667/1](https://forum.reserve.org/t/rfc-resubmission-eth-issuance-and-redemption-throttle-changes-with-update/667/1) ### Summary This resubmitted proposal seeks to increase issuance and redemption throttles for ETH+, aimed at optimizing the experience for large-scale users. The [initial submission](https://forum.reserve.org/t/rfc-eth-issuance-and-redemption-throttle-changes/611) did [not pass quorum](https://app.reserve.org/ethereum/token/0xe72b141df173b999ae7c1adcbf60cc9833ce56a8/governance/proposal/75651631275193256868410638391501300223286510728542345115994000137977116585206) in the on-chain vote, but received significant support from the community, so we are pushing this forward for another vote. Please note, that the increase in the issuance and redemption is higher than the original proposal. ### Background Currently, the ETH+ issuance throttle is set to whichever is higher: 250 ETH or 5% of the ETH+ market cap. Similarly, the redemption throttle is determined by the higher value between 500 ETH or 7.5% of the ETH+ market cap. In discussions with large minters, the feedback we’ve received indicates that the current offering is too limiting because they wish to mint and redeem in as few transactions as possible. ### Specification ``` Throttle Current Cap Proposed Cap Issuance 250 ETH or 5% 1,700 ETH or 10% Redemption 500 ETH or 7.5% 2,000 ETH or 12.5% ``` ### Rationale The original vote was to increase the redemption to 625 ETH or 12.5% and the issuance to 500 ETH or 10%. Based on comments from the [original RFC](https://forum.reserve.org/t/rfc-eth-issuance-and-redemption-throttle-changes/611/10). Increasing the redemption and issuance throttle further could be prudent. The current throttle settings are too restrictive. Whales are dealing with long wait times for minting and unnecessary gas fees. These limits worsen the customer experience for RToken issuance and slow down the growth of Total Value Locked (TVL). We need to adjust the issuance and redemption throttles to make the process smoother and to more easily integrate large users into Reserve. ### Risks Reserve has rigorous smart contract audits, from some of the best in the industry, particularly Trail of Bits. This significantly reduces the likelihood of any exploit from a bug. The issuance throttle safeguards against attacks during collateral defaults, exploiting RSR-funded recapitalizations. Given that ETH+ holds minimal $RSR collateral, it is less vulnerable to such exploits. ### Conclusion This proposal, with revised throttle limits, seeks to grow the issuance and redemption throttle further than what it was previously. By doing this, ETH+ will become a more attractive product for whales to invest in ETH+ with less friction. The community’s insights and opinions are invaluable in refining and validating these adjustments. Feedback is encouraged to ensure these changes align with the collective goals of enhancing functionality and user experience while maintaining robust security measures.
0x9ca72f03…71a3sent to0x239cdcbe…f981·#19,762,453·0x744eefaa…db1b02
# Collateral Basket Change Proposal: Adding Staked frxETH (sfrxETH) to the ETH+ Collateral Basket [https://forum.reserve.org/t/rfc-collateral-basket-change-proposal-adding-staked-frxeth-sfrxeth-to-the-eth-collateral-basket/685/1](https://forum.reserve.org/t/rfc-collateral-basket-change-proposal-adding-staked-frxeth-sfrxeth-to-the-eth-collateral-basket/685/1) ## Summary This proposal recommends integrating staked frxETH (sfrxETH) into the ETH+ collateral basket to enhance the diversification of our index LST following the mandate to add value to ETH+ holders through diversification. ## Abstract Staked frxETH (sfrxETH) represents a staked version of frxETH that accrues yields from Frax Ether validators. All profits generated are passed to sfrxETH holders, making it an attractive option for staking. This proposal suggests allocating 33.3% of the ETH+ collateral to sfrxETH, evenly distributing staking diversification across Lido ETH, Rocket ETH, and Frax ETH. ## Problem Statement The ETH+ collateral basket currently comprises only two types of diversified staking collaterals, limiting the risk spread and potential yield enhancement. There is a clear opportunity to broaden this spectrum by incorporating trusted, high-performance tokens like sfrxETH, further aligning with our diversification mandate. ## Rationale Frax.Finance is a pillar within the DeFi ecosystem. All their products are audited and have stood the test of time against exploit risk. The current APY for sfrxETH stands at 4.81%, which is higher than ETH+'s existing components (rETH at 2.66% and Wrapped stETH at 3.10%).It seems to be a logical next step to integrate a product such as this into the ETH+ collateral basket. **Enhanced Diversification:** Adding sfrxETH diversifies the sources of yield within the basket and mitigates risks associated with the concentration in fewer staking platforms. **Yield Improvement: frxETH** is designed to be loosely pegged to ETH, capitalizing on Frax’s proven strategies in the synthetic asset market to potentially offer higher yields. ## New ETH+ Collateral Basket Token Allocation APY = 3.52% rETH 33% 2.66% Wrapped stETH 34% 3.10% sfrxETH 33% 4.81% [Defillama](https://defillama.com/yields) ## Risks Adding another asset as collateral adds additional counterparty risk. However, frxETH has gone through rigorous smart contract audits and has existed for a long time with no exploit occurring. It’s important to understand the staking and yield dynamics between staked frxETH (sfrxETH) and frxETH. The documentation to frxETH is linked [here](https://docs.frax.finance/frax-ether/overview) for the community to explore further. ## Conclusion Please provide any questions or feedback in the comments to enhance the discussion and help the DAO in making this decision.
0x9ca72f03…71a3sent to0x239cdcbe…f981·#19,557,253·0x0f7ec809…432a68
# ETH+ Issuance and Redemption Throttle Changes ## Summary This RFC suggests a change that would increase the issuance and redemption throttle for ETH+. The goal of this proposal is to enhance the user experience for large capital allocators who are looking to mint ETH+ in size. We are seeking the community’s feedback on whether this should be implemented. [Link to Discussion](https://forum.reserve.org/t/rfc-eth-issuance-and-redemption-throttle-changes/611) The change will be implemented with two proposals. In this proposal, we are voting on increasing the issuance throttle. ## Background Currently, the ETH+ issuance throttle is set to whichever is higher: 250 ETH or 5% of the ETH+ market cap. Similarly, the redemption throttle is determined by the higher value between 500 ETH or 7.5% of the ETH+ market cap. In discussions with large minters, the feedback we’ve received indicates that the current offering is too limiting because they wish to mint and redeem in as few transactions as possible. ## Specification This proposal aims to adjust the issuance throttle to the higher of either 500 ETH or 10% and the redemption throttle to the higher of either 625 ETH or 12.5% Following is a comparison of the proposed changes: | Throttle |Current Cap| Proposed Cap |--------|--------|--------| | Issuance| 250 ETH or 5% | 500 ETH or 10%| | Redemption | 500 ETH or 7.5% | 625 ETH or 12.5% | ## Rationale Issuance and redemption throttling are important mechanisms designed to safeguard RToken & $RSR stakers from being drained from malicious actors attempting to drain funds or inject large amounts of defaulting collateral into the protocol. However, the current throttle settings are too restrictive. Whales are dealing with long wait times for minting and unnecessary gas fees. These limits worsen the customer experience for RToken issuance and slow down the growth of Total Value Locked (TVL). We need to adjust the issuance and redemption throttles to make the process smoother and to more easily integrate large users into Reserve. ## Risks Increasing the throttles can result in more volatility for ETH+ TVL figures, however, contributors believe that throttle levels can be increased while still remaining conservative. These changes would result in improved user experience while maintaining safety and security. ## Conclusion This proposal aims to raise the issuance and redemption thresholds for ETH+, to enhance the platform’s efficiency and user satisfaction. In doing this, there are potential risks as well as opportunities to grow the Reserve vision further. We are asking the community to provide their feedback, supporting or critiquing, to ensure these changes meet our collective goals and standards.
0x9ca72f03…71a3sent to0x239cdcbe…f981·#19,557,240·0x883da5c8…f975ea
# ETH+ Issuance and Redemption Throttle Changes ## Summary This RFC suggests a change that would increase the issuance and redemption throttle for ETH+. The goal of this proposal is to enhance the user experience for large capital allocators who are looking to mint ETH+ in size. We are seeking the community’s feedback on whether this should be implemented. [Link to Discussion](https://forum.reserve.org/t/rfc-eth-issuance-and-redemption-throttle-changes/611) The change will be implemented with two proposals. The redemption throttle is being voted on in this proposal. The issuance throttle will be voted on in the second proposal. ## Background Currently, the ETH+ issuance throttle is set to whichever is higher: 250 ETH or 5% of the ETH+ market cap. Similarly, the redemption throttle is determined by the higher value between 500 ETH or 7.5% of the ETH+ market cap. In discussions with large minters, the feedback we’ve received indicates that the current offering is too limiting because they wish to mint and redeem in as few transactions as possible. ## Specification This proposal aims to adjust the issuance throttle to the higher of either 500 ETH or 10% and the redemption throttle to the higher of either 625 ETH or 12.5% Following is a comparison of the proposed changes: | Throttle |Current Cap| Proposed Cap |--------|--------|--------| | Issuance| 250 ETH or 5% | 500 ETH or 10%| | Redemption | 500 ETH or 7.5% | 625 ETH or 12.5% | ## Rationale Issuance and redemption throttling are important mechanisms designed to safeguard RToken & $RSR stakers from being drained from malicious actors attempting to drain funds or inject large amounts of defaulting collateral into the protocol. However, the current throttle settings are too restrictive. Whales are dealing with long wait times for minting and unnecessary gas fees. These limits worsen the customer experience for RToken issuance and slow down the growth of Total Value Locked (TVL). We need to adjust the issuance and redemption throttles to make the process smoother and to more easily integrate large users into Reserve. ## Risks Increasing the throttles can result in more volatility for ETH+ TVL figures, however, contributors believe that throttle levels can be increased while still remaining conservative. These changes would result in improved user experience while maintaining safety and security. ## Conclusion This proposal aims to raise the issuance and redemption thresholds for ETH+, to enhance the platform’s efficiency and user satisfaction. In doing this, there are potential risks as well as opportunities to grow the Reserve vision further. We are asking the community to provide their feedback, supporting or critiquing, to ensure these changes meet our collective goals and standards.
0x89981a2b…a4d6sent to0x239cdcbe…f981·#17,879,540·0x5fc94862…ca2211
# Adjust Default Rtoken Throttles **Introduction** This proposal seeks to adjust the default throttle limits on RToken issuance and redemptions. Following the recent Curve exploit, we feel that it is prudent to re-evaluate these parameters in order to maximize the security of RToken holders. Specifically, we invite RToken governors to consider the following changes: **Proposed Specification** Issuance Throttle - From 2.5% to 5% of RToken TVL - From 1000 eth to 250 eth Redemption Throttle - From 5% to 7.5% of RToken TVL - From 2000 eth to 500 eth **Motivation** We recommend these changes to bolster the Reserve ecosystem’s security through more conservative limits, considering recent industry events. *What Happened with Curve and why is it Relevant?* On July 30th, Curve suffered an exploit where attackers took advantage of a technical flaw which allowed attackers to mint infinite pool tokens and fraudulently claim the entirety of the pools’ funds. Fortunately, none of the RToken-related pools were affected. However, we must reflect on what could have happened in the theoretical case that RToken pools were affected. Notably for hyUSD, which is paired with eUSD on Curve, slowing the rate at which the RTokens (and thus LP tokens) can be minted would inhibit a similar attack by creating a tight bottleneck at key junctions of the exploit. This measure was not present in any of the affected pools from the recent attack - flashloans let the attackers obtain infinite ETH with which they could mint infinite LP tokens. *Understanding the Proposed Changes:* In more general terms, by setting lower throttles on RTokens, we reduce the opportunities and flexibility for an attacker to carry out exploits in size. - Issuance Throttle: By decreasing this limit, we make it harder for potential attackers to mint an excessive amount of new RTokens - whether the RTokens are fraudulently minted (exploiting a bug in Reserve) or used externally for carrying out another attack (the example described above with the hyUSD/eUSD Curve pool). - Redemption Throttle: Decreasing this limit makes it more challenging for potential attackers to redeem a large amount of existing RTokens in a fraudulent manner. *Weighing the Costs* These modifications are not without trade-offs. Notably, it can become harder for large depositors to enter and exit RToken positions with reduced throttles. We must be wary of creating unnecessary friction. However, an analysis of hyUSD’s 16 minters 1 indicates that only two minted amounts in excess of $250k (both of them Reserve-affiliated), suggesting minimal impact of the proposed change on hyUSD users. Moreover, recall that the throttle restrictions operate based on the larger of 1) the % RToken TVL, and 2) the absolute amount. Based on the proposed 5% issuance throttle, the percentage calculation takes over above $5M TVL, and at $10M RToken TVL, the issuance throttle becomes $500k. We feel these figures respect an RToken’s ability to grow unimpeded whilst prioritizing safety. **Conclusion** Reflecting on the recent Curve exploit, we believe proactive steps can strengthen the RToken ecosystem. Reducing the default throttles for issuance and redemption can enhance the security of RTokens by limiting any potential harms, both internal and external. We urge all Reserve RToken governors to review this proposal and provide your feedback or questions. Your participation is vital in ensuring the continued success and integrity of Reserve.