The fraction of revenues that should go towards RToken holders vs stakers, as given by the relative values of dist.rTokenDist and dist.rsrDist. This can be thought of as a single variable between 0 and 100% (during deployment).
Default value: 60% to stakers and 40% to RToken holders. Reasonable range: 0% to 100%
Dimension: {UoA}
The minimum sized trade that can be performed, in terms of the unit of account.
Setting this too high will result in auctions happening infrequently or the RToken taking a haircut when it cannot be sure it has enough staked RSR to succeed in rebalancing at par.
Setting this too low may allow griefers to delay important auctions. The variable should be set such that donations of size minTradeVolume would be worth delaying trading batchAuctionLength seconds in the event of urgent recollateralization.
This variable should NOT be interpreted to mean that auction sizes above this value will necessarily clear. It could be the case that gas frictions are so high that auctions launched at this size are not worthy of bids.
This parameter can be set to zero.
Default value: 1e21 = $1k on mainnet; 1e20 = $100 on L2s
Reasonable range: 1e19 to 1e23
Dimension: {UoA}
The maximum sized trade for any trade involving RToken, in terms of the unit of account. The high end of the price is applied to this variable to convert it to a token quantity.
This parameter can be set to zero.
Default value: 1e24 = $1m
Reasonable range: 1e22 to 1e27.
Dimension: {1}
The rewardRatio is the fraction of the current reward amount that should be handed out per second.
Default value: 1146076687500 = a half life of 7 days
Reasonable range: 1e11 to 1e14
To calculate: ln(2) / (seconds in half life), and then multiply by 1e18.
1 week half-life: ln(2) / (7 * 24 * 60 * 60) * 1e18 = 1146076687500
Dimension: {seconds}
The unstaking delay is the number of seconds that all RSR unstakings must be delayed in order to account for stakers trying to frontrun defaults. It must be longer than governance cycle, and must be long enough that RSR stakers do not unstake in advance of foreseeable basket change in order to avoid being expensed for slippage.
Default value: 1209600 = 2 weeks
Reasonable range: 1 to 31536000
Dimension: {seconds}
The trading delay is how many seconds should pass after the basket has been changed before a trade can be opened. In the long term this can be set to 0 after MEV searchers are firmly integrated, but at the start it may be useful to have a delay before trading in order to avoid worst-case prices.
Default value: 0 = 0s
Reasonable range: 0 to 604800
Dimension: {seconds}
The warmup period is how many seconds should pass after the basket regained the SOUND status before an RToken can be issued and/or a trade can be opened.
Default value: 900 = 15 minutes
Reasonable range: 0 to 604800
Dimension: {seconds}
The auction length is how many seconds long Gnosis EasyAuctions should be.
Default value: 900 = 15 minutes
Reasonable range: 60 to 3600
Dimension: {seconds}
The dutch auction length is how many seconds long falling-price dutch auctions should be. A longer period will result in less slippage due to better price granularity, and a shorter period will result in more slippage.
In general, the dutchAuctionLength should be a multiple of the blocktime. This is not enforced at a smart-contract level.
Default value: 1800 = 30 minutes on (12s blocktime) mainnet; 900 = 15 minutes on L2s
Reasonable range: 100 to 3600
Dimension: {1}
The backing buffer is a percentage value that describes how much extra collateral to hold as backing in the BackingManager. It is important for preventing RSR seizure during normal rebalancing.
Too low a backing buffer can result in RSR seizure during normal rebalancing. While unpleasant, the stronger reason to avoid this is to prevent situations where RSR stakers are incentivized to unstake before rebalancing proposals in order to avoid paying their fair share. The backing buffer should be set high enough to prevent this outcome.
On the other hand, too high a backing buffer can cause RToken and RSR staker yields to drop during large supply increases as new issuance creates additional debt burdens that must be filled in with new appreciation. In general the amount of time this takes is short, but when an RToken grows fast enough it can outpace and result in no revenue being recognized for a while.
Note: It is not important to consider the backing buffer for default scenarios, only governance-led rebalances.
There is no one-size-fits-all -- each RToken should customize their backing buffer parametrization based on the following factors:
(i) how many days of yield will it take to fill the backing buffer (ii) the expected loss due to slippage if the least-liquid backing collateral is removed; and (iii) the sensitivity of RToken holders to variance in their yield.
Default value: 15e14 = 0.15%
Reasonable range: 1e13 to 1e17
Dimension: {1}
The max trade slippage is a percentage value that describes the maximum deviation from oracle prices that any trade can clear at. Oracle prices have ranges of their own; the maximum trade slippage permits additional price movement beyond the worst-case oracle price.
Default value: 0.01e18 = 1% on mainnet; 0.5% on L2s (with liquidity caveats)
Reasonable range: 1e12 to 1e18
Dimension: {s}
The number of seconds a short freeze lasts. Governance can freeze forever.
Default value: 259200 = 3 days
Reasonable range: 3600 to 2592000 (1 hour to 1 month)
Dimension: {s}
The number of seconds a long freeze lasts. Long freezes can be disabled by removing all addresses from the LONG_FREEZER role. A long freezer has 6 charges that can be used.
Default value: 604800 = 7 days
Reasonable range: 86400 to 31536000 (1 day to 1 year)
Dimension: {1}
The fraction of RSR stake that should be permitted to withdraw without a refresh. When cumulative withdrawals (or a single withdrawal) exceed this fraction, gas must be paid to refresh all assets.
Setting this number larger allows unstakers to save more on gas at the cost of allowing more RSR to exit improperly prior to a default.
Default value: 5e16 = 5% on mainnet; 1% on L2s
Reasonable range: 0 to 25e16 (0 to 25%)
In order to restrict the system to organic patterns of behavior, we maintain two supply throttles, one for net issuance and one for net redemption. When a supply change occurs, a check is performed to ensure this does not move the supply more than an acceptable range over a period; a period is fixed to be an hour. The acceptable range (per throttle) is a function of the amtRate and pctRate variables. It is the maximum of whichever variable provides the larger rate.
The recommended starting values (amt-rate normalized to $USD) for these parameters are as follows:
| Parameter | USD Value |
|---|---|
| issuanceThrottle.amtRate | $2m |
| issuanceThrottle.pctRate | 10% |
| redemptionThrottle.amtRate | $2.5m |
| redemptionThrottle.pctRate | 12.5% |
Be sure to convert a $ amtRate (units of {qUSD}) back into RTokens (units of {qTok}).
Note the differing units: the amtRate variable is in terms of {qRTok/hour} while the pctRate variable is in terms of {1/hour}, i.e a fraction.
The redemption throttle must be set higher than the issuance throttle.
Dimension: {qRTok/hour}
A quantity of RToken that serves as a lower-bound for how much net issuance to allow per hour.
Must be at least 1 whole RToken, or 1e18. Can be as large as 1e48. Set it to 1e48 if you want to effectively disable the issuance throttle altogether.
Default value: 2e24 = 2,000,000 RToken. If the RToken is not pegged to USD then this number should be discounted by a factor of the RToken price in USD. For example: an ETH-pegged RToken might use 2e24 / 4000 = 500,000 RToken.
Reasonable range: 1e22 to 1e27
Dimension: {1/hour}
A fraction of the RToken supply that indicates how much net issuance to allow per hour.
Can be 0 to solely rely on amtRate; cannot be above 1e18.
Default value: 10e16 = 10% per hour
Reasonable range: 1e15 to 1e18 (0.1% per hour to 100% per hour)
Dimension: {qRTok/hour}
A quantity of RToken that serves as a lower-bound for how much net redemption to allow per hour.
Must be at least 1 whole RToken, or 1e18. Can be as large as 1e48. Set it to 1e48 if you want to effectively disable the redemption throttle altogether.
Default value: 2.5e24 = 2,500,000 RToken. If the RToken is not pegged to USD then this number should be discounted by a factor of the RToken price in USD. For example: an ETH-pegged RToken might use 2.5e24 / 4000 = 625,000 RToken.
Reasonable range: 1e23 to 1e27
Dimension: {1/hour}
A fraction of the RToken supply that indicates how much net redemption to allow per hour.
Can be 0 to solely rely on amtRate; cannot be above 1e18.
Default value: 12.5e16 = 12.5% per hour
Reasonable range: 1e15 to 1e18 (0.1% per hour to 100% per hour)
Governance is generally 8 days end-to-end.
Default values
- Voting delay: 2 day
- Voting period: 3 days
- Execution delay: 3 days
Proposal Threshold: 0.01% Quorum: 10% of the StRSR supply (not RSR)