Proposal to add ETH+/ETH to the Gauge Controller

Gauge Proposals
#1

Summary:

Proposal to add ETH+/ETH to the Gauge Controller

References/Useful links:

• Website: https://register.app/#/overview?token=0xE72B141DF173b999AE7c1aDcbF60Cc9833Ce56a8

• Documentation: https://reserve.org/protocol/

• Github Page: https://github.com/reserve-protocol/protocol   

• Curve Gauge Vote: https://dao.curve.fi/vote/ownership/344

• Convex Vote: https://vote.convexfinance.com/#/proposal/0x780f3c8787218c49b6ecd63d766aa86f22347186d95be0ecdbc0a69e102d0190

• ETH+ Discord (Reserve): https://discord.gg/WemEpyM8nN

• Twitter: https://twitter.com/ETHPlus_

ETH+ Description:

ETH+ is a community-governed, diversified, yield-bearing staked Ethereum index with overcollateralization protection from RSR stakers, who govern all changes and upgrades to ETH+

The initial collateral backing for ETH+ comprises:

  • 50% rETH - RocketPool LSD
  • 50% wstETH - Lido LSD

As two of the largest LSDs in the Ethereum staking ecosystem rETH and wstETH provide deep liquidity and a diverse set of validators.

Motivation:

To deepen on-chain ETH+ liquidity, to ensure more efficient swaps and to further grow demand for the token.

Specifications:

  1. Governance: RSR holders who choose to stake RSR on ETH+ can propose changes to the basket or revenue split. ETH+ has the following mandate:
    a. Maintain an Ethereum-aligned Liquid Staking Token basket.
    b. Positively impact the Ethereum staking distribution.
    c. Provide value to ETH+ holders through diversification.
  2. Oracles: ETH+ uses ChainLink price oracles in order to monitor prices of collateral assets.
  3. Audits: Reserve has been audited by multiple top tier audit agencies.
  4. Centralization vectors:
    • Currently, the Reserve team automates operations to monitor and manage collateral for various RTokens. Examples include auctioning off backstop collateral (i.e. RSR) and auctioning off collateral revenue to buy RSR or RTokens. Reserve is actively seeking MEV searchers (by providing proper incentives) to participate in decentralizing this process
  5. Market History: The RSR token has been actively trading since May 2019. Price movements are correlated to the overall crypto market cycles. RSR currently trades on 40+ exchanges including Binance, KuCoin and Huobi with an average daily volume of $50M to $200M over the last 90 days. RSR currently trades on Curve in a RSR+FRAX/USDC (FRAXBP) pool. If the Reserve platform becomes successful with many RTokens governed by RSR, we believe this gauge may bring consistent volume and fees to Curve.
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