Curve vote, 5.9Bn Tx, RSV confirmed to be RToken, Moby, lsdETH and more!
Happy birthday (of sorts). Well who knew — this marks the second anniversary of my first Medium article. Frightening I know, but we all have our crosses to bear. My master plan of putting them together and releasing a book of memoirs à la Eric Jacksons Paypal Wars is coming along nicely.
Quieter week this week so less guff to read. Let’s have a look..
- Memory lane
- RSV / Tx
- Curve
- Moby
- Development
- Staking guide
- AOB
Memory lane
Well, 2021 was Marzo!
2022 was Dashboard!
And it appears I was still going for the caption competition — I’d forgotten, like all humans and the ability to forget pain quite easily.
RSV / Tx
We have confirmation from Thomas that RSV will be made an RToken -eUSD no less. So all revenue will go to RSR stakers — yay.
and within 6 months is the plan. This is Reserve so we add 30% to that and November is the aim. Once RSV is an RToken then that means the whole protocol and app are decentralised.
Interestingly, a new RToken has popped up :
Savings dollar, where the split is 90 / 5 / 5
Will keep an eye on this — obviously it’s not going to be much staked due to the low % to stakers, but it might be popular with exchanges and *gasp* real-worldies. Imagine holding treasury in a backed stable with yield, or an app savings vehicle, or for traders (with high liquidity) to have a yield on untraded balances.
Transaction volume has dropped off a bit this week — no idea why — maybe someone is waiting for another RToken… We’re at $5.9Bn total Tx volume, so maybe another 10–12 days and it’ll be 6Bn — wow that’s a lot.
Curve
There’s a vote most likely to get passed on Curve
To allow incentives on the eUSD / Frax / USDC pool — yada yada yada Curve yada yada what? tl;dr — gainz!
From the Curve newsletter :
Reserve owns lots of CVX (remember back in the day) to incentivise liquidity in this pool — which means eUSD has low swap charge and becomes liquid — which helps anyone wanting to use it. I’ll report back on the yield, but expect it to be initially high.
There’s $1M in the pool at present.
The knock on effect of this is of course, more eUSD, which means higher Mcap, which means more yield to stakers.
I’ll do another guide if it’s up and running next week.
Moby
Slowly adding functionality — now US users have fiat on ramps
Hopefully Europe ROW isn’t too far away.
Development
I’ve been vague here as I’ll cover lsdETH and github. First lsdETH
What’s in the basket?
Let’s head over to GitHub…
Looks like this might come off…. Also notice the Convex pool plugin!
Other work in GitHub :
Once these plugins are added to the protocol I think we’ll get some interesting RTokens created. I know of 1 which is waiting for the higher yield plugins.
Staking Guide
Reserve have done a step by step on how to press 3 buttons (cruel).
So if anyone wants to know what to do just give them the link.
Our current RToken is now over 100% staked — yes, over 100% staked. Does someone expect a rise in Mcap soon or is everyone just after more than zero? Who knows. If this keeps going, then fast forward to an Mcap of say, $50M eUSD, which is not far away with convex incentives and at current prices that would lock up 12.5Bn RSR — yes 8.1% of circulating supply. And would be buying 26M RSR per month at auction. Here’s the math :
Using $0.004 as price.
If that goes 10x then you’re looking at over a million dollars a month of RSR getting bought for stakers.
Just to reiterate what base rate yield and staking yield are :
Base rate is the 2.5% you see here — that’s the underlying assets accrual — the likes of Compound and AAVE rewards. 3 scenarios :
- Over 100% staking (like today) Mcap 1,000,000, staked 1,200,000 means staking yield of 2.08% (less than base rate)
- Same Mcap but slightly under 100% staked (we’ll say 800,000) means staking yield of 3.125%
- Same Mcap but low staking (let’s go 400,000) means staking yield of 6.25%
So you can see base yield is not the whole story at all. In an ideal world the Mcap of all RTokens is slightly higher than the available RSR to stake on them.
Since we’re nearly finish lets have a years time scenario of a decent Mcap :
Mcap : 750,000,000
Base yield : 2.75%
% to RSR Stakers : 100
Amount staked : 40% (or let’s say RSR is 5c) $300M which is 6Bn RSR
Staking yield : 6.88%
Monthly buyback : 34,375,000 RSR
So that’s 12% of supply tied up and buying nearly 1% a year in rewards. No RSR will be minted for this either.
Using ETHs PE ratio, the earnings per RSR would value it at 12c.
AOB
Larry’s takeaways from ETH Denver :
Reserve had a video running at ETH Denver — a nice compact summary :
Standard.
Anything else? A report on RWA has a comprehensive list of projects linked to regenerative finance and crypto :
Thanks for reading as ever and see you next week hopefully!
