The core proposal is to add rETH as a cauldron for minting $MIM. rETH is Rocket Pool Ether, which represents staked ETH as an interest-bearing ERC20 token.
Documentation and Wiki
Provide Market and Usage data on the proposed collateral.
- As of 27 Dec 2021 (You can obtain this by checking
/tvlin RP discord) :
Total rETH Supply: 33,806 rETH Market Cap: $139.5M Liquidity Breakdown: Balancer: $500k split between ETH and rETH Uniswap V3: $7M worth of RPL, $200k worth of ETH RP Deposit Pool: 1468 ETH / $580k, out of max size of 2000 ETH. -------------Total Liquidity------------- $8.28 million Protocol TVL Breakdown: + 64640.00 ETH: Staking Minipools + 480.00 ETH: Pending Minipools + 1468.54 ETH: Deposit Pool Balance -------------Total ETH Locked------------- 66588.54 ETH (271.3 million DAI) + 2289996.79 RPL: Staked RPL + 24500.00 RPL: oDAO Bonded RPL ------------Total Value Locked------------ 92852.67 ETH (378.4 million DAI)
- Daily summary: https://twitter.com/RocketPoolBot
- Built by community member VGR
rETH deposits over time on Dune
- Built by community member GreyWizard
- As of 27 Dec 2021 (You can obtain this by checking
Communities and socials
The Rocket Pool (RP) protocol is a decentralized Ethereum 2.0 Proof of Stake infrastructure service. 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 that lowers the wealth threshold. Abstracting staked ETH as rETH, participants can retain commodity properties of their stake (transfer of ownership).
There are 2 primary users in RocketPool:
Stakers can show up with as little as 0.01 ETH to be deposited in exchange for rETH. rETH is a redemption token representing staked ETH. rETH can be burnt at the Rocket Pool contract or website in exchange for ETH and accumulated staking reward. They do not need to run a machine. The returns are subject to a commission to node operators, which is a % of the staking rewards earned.
Node Operators can show up with 16 ETH, along with 1.6 ETH worth of RPL tokens as collateral to stake on behalf of the pool. This is permissionless, so anyone can do this as long as they have the infrastructure and collateral. They will receive RPL inflation rewards, as well as ETH commission from the pool, along with staking rewards on their own 16 ETH.
Unlike beacon chain ETH, rETH can be freely transferred and traded as it implements the ERC-20 interface. Onboarding rETH to Abracadabra would allow users to borrow against rETH.
For more information about rETH and how it works, please feel free to see this page written by one of the devs.
Abracadabra is a fast-growing multichain protocol that would make a strong partner with RP and its community. Right now, RP is bridging its rETH token across chains to make liquid staking more accessible for the masses - it is currently available in Optimism, Arbitrum, and zkSync. Abracadabra currently offers other ETH staking vaults, such as Yearn stETH. rETH is important to hedge against the risks of other ETH staking services (particularly because of its decentralized nature) and will be an important addition to the DeFi space in general.
As a protocol that aspires to keep in line with Ethereum’s ethos, the protocol aims to be fair and is actively engaged in research to share all MEV and proposal rewards with rETH stakers, increasing the chance that the protocol will outperform other staking services, or at the very least, provide the fairest reward possible.
Allow rETH as collateral with the same pool specifications as yvcrvSTETH (Maximum collateral ratio 75%, liquidation fee 12.5%, borrow fee .5%, interest .5%) on Ethereum Mainnet.
Integration should not require much overhead as rETH itself is an interest-bearing ERC20 token, that does not rely on rebasing mechanisms.
- Diversified risks and potentially higher return on ETH staking for Abracadabra depositors.
- Creates a non-LP liquid staking position that does not depend on the continuation of any liquidity mining incentives.
- Potential for more protocol fees - rETH is likely to be very popular as a staking asset, and demand for borrowing against it will be high.
Rocketpool is relatively new on mainnet - since November 9, 2021. However, the risk can be considered to be mitigated to a great extent because:
- Staged rollout has been successful
- TVL is over USD 300 million as of 26 Dec 2021
- The protocol has undergone 3 betas
- The protocol has undergone audits by 3 separate auditors
- The protocol has an active bug bounty program with immune.fi
- The code is open-source
rETH stakers are exposed to smart contract risks, primarily. They should not lose any ETH even if node operators do not perform well. This is because
- Node operators (NO) have to provide a collateral of 16 ETH for each validator
- Beacon chain will boot a validator if its balance drops to 16 ETH
- The ‘lost’ ETH will be taken entirely out of the NO’s balance
- To protect against unforseen circumstances where they may lose more than 16 ETH, the NO also has to post a RPL collateral that may be auctioned off
As of now, rETH price can only be derived from uniswap/balancer’s liquidity pool. The dev team is looking to add a chainlink oracle soon.
As with anything to do with ETH staking, the usual risks apply - protocol risk and implementation risk of ETH staking, withdrawal methods, and RP’s implementation of withdrawals.
- What is your relation with the team of the proposed collateral? Are you a team member or a user?
- Answer: I am a user of the proposed collateral
The scope of this proposal covers the deployment of the Cauldron on mainnet.
rETH is expected to appreciate against ETH at the rate of staking rewards. To get an accurate price, the team and liquidity have been looking into liquidity pools that have minimal slippage, as of writing, the available ones are:
- RocketPool Deposit Contract
- This allows users to burn rETH for ETH at the correct rETH price without DEX slippage.
- This will always give the most accurate price. Liquidity is capped at 2,000 ETH at the moment but this cap is expected to be increased as the protocol grows.
- Uniswap V3 pool
- Make use of concentrated liquidity for rETH vs ETH.
- Balancer pool
- Use weighted pools to provide a tighter price vs uniswap-v2-style pools
|Rocket Pool Storage||0x1d8f8f00cfa6758d7bE78336684788Fb0ee0Fa46|
|rETH/WETH Balancer Pool||Balancer|
|rETH/WETH Uniswap V3 Pool||0xf0e02cf61b31260fd5ae527d58be16312bda59b1|