Space Summary
The Twitter Space RToken Governance Weekly Standup hosted by reserveprotocol. The RToken Governance Weekly Standup delved into the transparent launch and governance of RTokens, stressing decentralization, regulatory compliance, and community engagement within the DeFi space. It highlighted the importance of transparency, decentralized governance, and regulatory adherence for the successful operation of asset-backed RTokens in a permissionless environment. The discussion also underscored the necessity of user engagement strategies to ensure active community participation and long-term sustainability.
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Space Statistics
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Questions
Q: How does transparency play a role in launching RTokens?
A: Transparency builds trust, credibility, and community involvement in the process of launching asset-backed RTokens.
Q: Why is decentralized governance crucial for the RToken platform?
A: Decentralized governance ensures inclusivity, fairness, and autonomy in decision-making for the RToken ecosystem.
Q: What measures are in place for regulatory compliance regarding RTokens?
A: Strict regulatory adherence and security protocols are implemented to uphold the legality and integrity of asset-backed RTokens.
Q: How can user engagement contribute to the success of RTokens?
A: Active user engagement enhances community participation, feedback, and long-term sustainability of asset-backed RTokens.
Highlights
Time: 00:15:27
Transparency in RTokens Launch Exploring the role of transparency in building trust during the launch of RTokens.
Time: 00:25:41
Decentralized Governance Principles Understanding the principles of decentralized governance for ensuring inclusivity in the RToken platform.
Time: 00:35:59
Regulatory Compliance Measures Detailed discussion on the regulatory frameworks and compliance measures for asset-backed RTokens.
Time: 00:45:12
User Engagement Strategies Insights into fostering user engagement to drive community involvement and growth of RTokens.
Key Takeaways
- Emphasis on transparency and community involvement in launching RTokens for asset-backed currencies.
- Importance of decentralized governance for maintaining trust and inclusivity in the RToken platform.
- Discussion on regulatory compliance and security measures to ensure the integrity of asset-backed currencies.
- Focus on user engagement strategies to foster community participation and sustainable growth of RTokens.
Behind the Mic
Introduction to the Space
TM. Tm. What's up, Twitter X? We have a space with two raphaels, so this must be a good space game. Guys, let's see. So many people here already. Johan. Hey, River. Tom. Okay, let's get going. Thank you all for joining me. We have a light agenda, but spicy. And then we also have some nice announcements. So let's kick it off.
Proposal Discussion
There's a proposal on the forum at the moment, and our very own Tom Sawyer, master of the Axis and of proposals, has asked to receive a revenue share of Eust in compensation for the work he's doing to solder the space and being active in governance. And maybe, Tom, if you could, then you could probably present it better than I do. Hey. Yeah, can you guys hear me? Cool. Yeah, so the proposal is that I put up on Monday was for a part of the revenue share for 3% for the work that I'm doing on governance, as well as in the marketing department of building the brand presence online.
Feedback and Concerns
And there was quite a lot of feedback in the sense of we support Tom getting compensated for his work, but the question is how. And so this is a, I think probably one of the, I think for the most part, like in the reserve ecosystem history, we haven't really had proposals that have went up where there's been a lot of disagreement. There's always kind of been a consensus in the r token history. But I think this is the first time where there's some people that are hesitant to get behind the proposal, and that's understandable. But the hesitancy comes from how should I be compensated, which is pretty interesting.
Open Floor for Discussions
So I definitely want to be able to open up the floor to at least the people who voted against it, or have come out and saying that, no, this is not the responsibility of the DAO for you to receive compensation, it's confusion capital's responsibility to pay you. And so I'll kind of end with the, this point that I was thinking about. It's who's the main beneficiary to kind of the work that I'm doing? Is it confusion capital? I mean, sure, they indirectly benefit from the work that I'm doing, but is it ugly cash or sense? I mean, to an extent they also benefit. But when you're looking at a proposal that's directly increasing the yield profile of EUSD, who's the direct beneficiary of that? And that would be the DAO.
Conclusion of the Proposal
And so it's definitely an interesting conversation where whatever the result is, there's probably going to be some people that disagree with it. So I think that's the beauty of decentralization. And yeah, I definitely hope there's some people that are listening that may not be in favor and I definitely want to let them voice their opinion. But yeah, that's more or less the main proposal this week. Thank you Tom, that's very insightful and I love that you are so thoughtful about this approach. Just in terms from governance process perspective, your proposal has received a pretty unprecedented amount of votes in the forum, Paul, and 80% of those are in favor.
Feedback on Governance Processes
So like this is modern enough to move it on chain, as I've known from my own sometimes painful experience on chain can be a very different story than temp checks, even if the temp checks are token voltage. So I think it's very good that you so thoughtful about it and are trying to work through the feedback of how else this could be done or if the proposal needs to be amended. And I'm not sure, I mean in the crowd we have here on this space, is there anybody who has objections to this proposal and would like to adam here, then please raise your hand. I'm more than happy to make you a speaker.
Comments From Other Participants
I'd probably just like to pitch in here as well. Definitely not against Tom being kind of compensated for his contribution to the kind of r token ecosystem with the governance. And it's a very good kind of lens to frame it through. Tom, like who benefits from your kind of continuous work on the r token? And I think it's not only that you're kind of contributing rfcs to increase the yield, but also you're thinking from a safety point of view as well. So not all rfcs will be kind of yield based. It could be kind of oh, should we swap this collateral out because of the risks?
Safety and Risk Discussion
And then with that frame you're also thinking about the RSR kind of stakers as well because they're first lost capital, we want to kind of protect them, or that you want to protect them as well. So I think it's a good lens to frame the argument and I think everyone benefits from your continued input. I appreciate that. Yeah, that's a good point to bring up as well the safety aspect of it. And yeah, I know, I see river in the crowd and he was actually one of the first people favor and I wouldn't mind getting him on the stage and just kind of seeing, you know what if he's seen the responses and if he's kind of had a change in mind or kind of what he's thinking if he can, of course.
Further Conversations
But, yeah. I've sent river an invite to speak. I'm not sure if he has responded yet or not, but if he wants to get on stage, he can. EUSD is so over collateralized, like, if we want, we could roll back this change later. If collateralization goes to a negative, well, like, is so heavily impacted that it starts to not make sense anymore. But the benefits of this proposal are really strong. And the fact that it kind of continues into perpetuity unless we change it, which is a big advantage against, say, a fixed grunt, are really high.
Concerns About the Proposal's Implementation
I understand why some people have their reservations, but if the grunt isn't going to be rolled out in a way that kind of, like, aligns with what Tom needs to get this done, then we need to think of an alternative mechanism. What's a good mechanism to do this revenue split? What can you. Everything comes at a cost, right? Stake of revenue over collateralization and so on and so forth. There are different ways to achieve this goal, but this, to me, feels like the best one to do it at the moment.
Possibility for Future Adjustments
And if we don't like it'll only take, what, two weeks to undo it again? Sure, that will be a difficult thing. Governance cycles and off boarding are always complicated, but it's a really elegant solution to a problem that we really should address and get moving. I don't feel like changing my opinion because I want to give Tom the benefit of the doubt and to kind of walk that back in due time if necessary. Not going to be a hard thing to do, and we should get moving, essentially.
Conclusion of the Discussion
Even with the criticism. There's always criticism. That's what being in a Dao is. Yeah, totally.
The Challenge of Decision-Making in DAOs
I think that's a really good point. I mean, I think that's kind of the brutal part about Daos making decisions is that you. You kind of get the full decision making process and not just the result. Yeah.
Compromise in Complex Processes
I was recently bidding for my llama risks renewal this week with Arva. It was a very complicated process. There was a lot of back and forth. We didn't essentially get what we wanted to begin with, but we got something that we're satisfied with and it's all about compromise. Exactly. And I think that's what kind of Tom wanted to navigate is, like, what kind of compromise would make it more palatable. Right. And I'm not sure.
Negotiation Techniques and Understanding Demands
Like, at stable lab, what we have done usually, like, is reduce price a little bit and then, like, people feel that, like, sometimes it's just people want to feel hard, right. And then it's like, okay, well, I go down with the price a little bit, or I'll change this or that a little bit, or I'll do that extra, and then they feel like they've made a difference or they made a difference, and then it's kind of fine. So that's sometimes a path that's open, but it's very difficult to do if you don't have, if you don't know exactly what is being asked for. And I think here it's basically James, who has been pretty vocal about it, who says, like, he's not sure what the education mandate is and basically who's doing it. So maybe this can be addressed.
Addressing Concerns and Redefining Compensation
And I think, Tom, what's probably good is to just like address these concerns in a way that don't detract from like, as they are and not as like you already said, right? Like that they're not arguing that you shouldn't receive compensation, but they are arguing, like, for something else. And maybe this can be incorporated further down the line, partly at least, right? Yeah.
Planning Responses to Stakeholder Feedback
I plan on starting to respond, if not today, then tomorrow, kind of through Sunday, and getting those responses out and at least to the people that are in support and have caveats. I think addressing those caveats is important. And then for the people, I do plan on addressing James as well. But yeah, I think I do plan on addressing some of the comments. I think it's important.
Contemplating Revenue Distribution
And also, I'll add, another thing I was thinking about here is that, you know, this is, even though it's a, as river pointed out, kind of a simple change or a quick change that can be done or undone? This also kind of sets the precedent of do we want, like who is this revenue share for? Is it only for stakers and deployers and our token holders or the occasional one off fintech company that wants to come in and partake in that proposal, or are we going to open it up to several different potential individuals who want to add value to the reserve ecosystem? And so I think that's a question that I don't really have answer to because I don't know what would best.
Precedents and Community Considerations
But that's another thing we should consider, is that if we vote against this, then there's a precedent that revenue is only for stakers, deployers and our token holders. And I think, I don't know that's, I mean, maybe that is the best thing for the reserve ecosystem. But that's another angle that I've been kind of thinking about as. Okay, well, what's the precedent here with this proposal? So, yeah, those are kind of my thoughts.
Identifying Roles and Sharing Responsibilities
I mean, that would be one way. How you could probably change it is if you say, hey, this is actually not tailored to me, but to the function, and I'm the one fulfilling the function, and I'm happy to share it with whoever pitches in. So, kind of like finding the role that you are doing and you are currently inhibiting this role, but you might not always want to inhibit it or inherit the role.
Invitation for Feedback
Sorry. Inhabit. I mean, or other people might want to come and join you and kind of amplify that. Yeah. So I think, I'm not sure if there's anyone in the crowd that was fully against this proposal or voted no, but I definitely want to open up the floor again to those individuals.
Reflection on the Proposal Discussion
Okay. Seems there's no one here, so. Yeah, thanks for presenting this. And I think it's really worthwhile to discuss this also, because it creates, like, what I really like about the proposal. It kind of creates a way for people to show that they're creating value and then opens up a path for them to become compensated, which is great. Then there's like two proposals that are quite interesting, exploratory in nature.
Understanding New Proposals
And one is the reserve swap and rust, and the other one is the reserved Dex stablecoin, both by James R. Watson. And I have to say, like, I didn't completely understand how this is going to work. He's basically, I think it's like even like a launch pool or something, where basically you lock up a certain amount of tokens in return for liquidity for that token, and he wants to beat that on reserve. I think that's an interesting idea.
Efficiency of Launch Pools
Of course, the difficulty is always like, why do people use launch pools? And usually it's because it gives them access to more investors. I think this is why binance has been so exceptionally successful in this space. They had this launchpad that was tied onto the binance chain and to BNB, and they just crushed it because they had the distribution just figured out.
Challenges of Distribution in New Proposals
And of course, this could be a similar technology, but the distribution aspect is not immediately clear. So I just wondered if somebody has some comments to one of these proposals. Yeah, I think these. I've missed these proposals, so I'd need to read through properly, I think, to understand them.
Next Steps and Announcements
Sounds like an interesting idea, but I. Yeah, I don't know how it would work in practice. Next time. Okay. Then I just want to point out to everybody that there is a presentation of the yield almanac. That is happening quite shortly after this and maybe Jake is here and can tell us a little bit more about it.
Yield Almanac Presentation Details
Episode four, and it's airing in basically one and a half hours now. Yeah, an hour and 39 minutes to be exact. We're going to have a live stream with Tom and Naga King at reserve to demo basically how to lp USD three on curve in exchange for the base variable APY. So if you're interested in how to do that, or just, you know, want to see our beautiful faces, you can join us.
Final Remarks Before Adjournment
There's no way to RSVP, so just at noon my time, an hour and a half from now, you'll see a post on the reserve X. You can join in and watch and. And live chat and all that good stuff. Before we. Before we drop off, I've noticed the origin eth crowder in the.
Introduction to On Chain Discussions
In the audience. I'd just like to invite them on chain. On chain. I just had to invite them on stage to discuss the OE proposals, both for ETH and based ETH. They're currently going through rfcs and developing plugins and I. River's been quite active discussing their proposals, so hope to give them an opportunity to kind of discuss with River Live if they want to just see where we are. Yeah, definitely. Bring them on chain. On chain, baby. X on chain. They will be so lit. Yeah. Peter or Rafael, if you want to come up, hit us up.
Extending Speaker Invitations
All right. Sent them both speaker invites, too, if they're able to pop on. Thanks a lot. Yeah. Hi, Rafan, we can hear you. Yeah, nice meeting you all. Happy to be here and happy to answer any questions. I don't know if Peter. Since Peter wrote the proposal, I don't know if you want to, like, say something. By the way, we also have Domin here who has been working on the adapter, so, yeah, we're happy to answer any question. Hey, guys, thanks. Thanks for bringing us up.
Discussion on OE and ETH Proposals
Yeah, I think Dublin has been working on the plugin for a little while now, but this, I think, would be pretty beneficial for both reserve and origin to have o eth part of ETH and super oef part of BSD. Ethan. River, I'm not sure if you saw my response to your comment on the forum post. Yeah, I did. How about you, like, run over the benefits just for those who aren't in the loop, maybe, and then we can talk about that afterwards. The benefits of adding support for the two origin tokens to the two reserve tokens? Yeah, yeah. Just start from the ground up.
Understanding the Value of OE
Imagine none of us have any idea what's going on. Just to be sure, everyone's on the same page. So o eth and super oe, well, I guess OE has been around for a little while now, but. But oe is one of the most pegged, if not the most pegged lst's. And alongside and parallel to that is also the highest yielding LST on the eth mainnet. So onboarding o eth to eth plus would bring up the underlying yield for eth plus. And then alongside that, doing the same for BSD. Eth with Super o eth, which currently has an underlying APY of 14.4%, would bring up the underlying yield of Bsdeath to somewhere around maybe 8% from where it's currently at.
Details on Proposal Comparisons
That is the short version of the two proposals. Super eth is also extremely pegged. I added a screenshot that I recommend everyone take a look at the bottom of my last comment on that proposal that kind of compares it to the other underlying assets of bsdeath in relation just to how pegged it is. And the reason that we're able to maintain such a high peg like that, or such a tight peg is largely due to the Amo mechanism behind both o eth and super oe, which I think is what a lot of your questions were kind of related to. River and Raphael on the call right now is can help explain the AmO a little bit better than myself.
Explaining the AMO Mechanism
Yeah, sure. River, what are your, like? Do you want to take over to ask the questions and things like that? I have a relatively good understanding of Amos. For those who don't, it's essentially just a set of instructions and smart contracts to let. Like the word amo is just a fancy word to say, like a program. If there's certain conditions, then you do this, and if there's other conditions, you do that. It's just smart contract code, its intention in code. You responded to my questions and the responses were satisfactory.
Concerns Regarding Withdrawals
One thing I would like to remember, though, I would like to remind everyone that with the existing lsts in based ETH, you can access the underlying ETH through a withdrawal. I look through your docs, you can't withdraw for underlying ETH, can you? You can only use a dex to access the underlying. Is that correct? Yeah, for now. That's correct. Like we are, we're working right now on like, we have been receiving a lot of messages about this. We should implement like, I don't know, like quite fast this part, because we implemented this already on Mainnet and superweave.
Upcoming Features and Enhancements
Uses the same code as Oef and Mainnet. But in order for us to ship things a little bit faster, we decided like, to deprioritize the asynchronous withdrawals. But we are enabling these like probably in the next couple of weeks. So there will be ways for you to get out. Yeah, we're hearing the concerns. Cool. I look forward to seeing those docs. I think I remember you from your mstable days as well. I used to work at DeFi safety. I think I reviewed you back in the day like blast from the past.
Feedback and Reflection
Yeah, nice. But otherwise, yeah, you addressed my questions pretty well so thanks for that. Yeah. I just wanted to also go into one of your questions, river, like because I think you mentioned about like the pool fees and not being super attractive.
Design of Fee Structure
I just wanted to say to you that this is by design. If you actually look at the pool that you were comparing us that on that pool the fee is 0.3% and in our pool the fee is 0.01%. This is because we want all the protocols to pair with super weave and we want the trades to happen. Like if you want to go to bath to not have almost any fee over that. Right? So the fees that you use is going to be from your own pool. And we're working already together with the aerodrome team with some new designs that will be very favorable for anyone who wants to pair with our token.
Understanding Redemptions and AMOs
Can I add some, just a couple of more thoughts about redemptions and Ramo. Sure. Maybe just one cool thing to point out is why we currently. What was one of the reasons we chose to. To basically have Amo as our main redemption mechanism is that usually similar products, like, you know, similar yield creating products have their underlying capital in various strategies. Strategies that deploy it to some protocol or let's take it to the validators. You know, there are multiple ways how to earn yield and usually those strategies are nothing completely momentarily liquid. So if you want to withdraw, you know, like 50% or a huge amount of the liquidity from the protocol, there needs to happen some wait. There's going to some wait time is going to incur.
Liquidity and Security in AMO
Right. If you want to pull. If you want to pull your Eth from the validators, you know, you got to exit the validator, wait for the exit queue and all that stuff. And that's usually one of the things that really influences a lot the price peg of a token. Because basically the more time that the sort of the native redemption of the token takes, the more it's going to unpack from its one to one main asset. And one of the really cool things about the AMO is that we basically have the vast majority of the protocols liquidity in the same place where it's also earning yield. So, meaning even though it's earning yield, we thought that the protocols are going to feel sort of secure. They can see the exact amount of liquidity for the exact amount of completely pegged price.
Collaboration and Community Engagement
I'll jump in here with some. Just kind of a thought comment. It might be good to get nectar involved in these conversations for based ETH and just kind of bounce some ideas off them as well. Just a thought, but, yeah, great explanation from the origin team. But thanks, Tom. We're super into trying to help and, like, remove any kind of questions of doubt. So more than happy to, like, I don't know, take this offline and chat with you guys on telegram to see how we can address all the concerns.
Thoughts on Community Participation
Yeah, I think ham would be a good person to get in touch with that about. Awesome. Yeah, I think, yeah. Thank you initially. Thank you for coming up and just kind of talking through the RFCs, explaining the rmos and it's good to see we're reuniting old friends here with river and Rafael M. Stable. So it's good to see. Yeah, I will get in contact with nectar. I was hoping that they'd kind of pitch in, but yeah, maybe they're not aware that proposal's gone live. So I'll do that. And yeah, Peter's got a telegram group a telegram chat with me, so maybe we could start a group and kind of just hammer out some things as and when they come up.
Future Discussions and Community Engagement
But yeah, more than happy to kind of discuss on these going forward, or kind of. I'd prefer things kind of open to the community, really, either through these Telegraph Twitter spaces or on the RFC, just to kind of keep it for community participation. But we can see how it goes. Going forward as perhaps a relevant comment as these proposals start to get more and more complicated. The forums are going to get more and more cluttered and the posts that get put up will be more and more polished with more and more of the work being done privately in DM's. It's just an inevitable way to speed things up, I'm afraid.
Challenges in Proposal Discussions
But we're not at that stage yet. But at some point I guarantee we will be. Yeah, it's really funny because I think discourse would really make it much better. The way commands are handled in this course is just makes it just completely impossible to work through complex proposals and complex items with multiple comments and multiple revisions. And I hope to bring out a plugin sometime because that would really help the space a lot. Or maybe we know somebody who's good at Ruby on rails and actually writing this stuff because I'm pretty sure every tower would pay for it.
Balancing Community and Private Discussions
Yeah, it's good to have your guys kind of opinion. I guess it's kind of trying to find the balance, isn't it, between the community side and things happening in private. But yeah, super excited for you guys to finish your plugins. I think the yield and basket diversification can be a massive benefit, but just need to weigh up the risks of the additions as well. Excellent. Any other topics we should discuss, or any questions from somebody in the community, then please raise your hand and I'll elevate you to speaker.
Conclusion and Thanks
Okay then, wishing everybody a good weekend and a good rest of your day. Thanks for coming on, and thanks to Raphael, Storm and Peter for the insights and for the questions. Thank you all. Thanks for Dem seeing. Have a good weekend. Bye. Have a good weekend guys. See you next week.
