I have voted in favor of this proposal but I have a few questions and points of clarification that I wanted to put on the record.
I think that there should be definitions for each of the parameters. I see some explanation in Sections 2.2 and 3 of the report but the naming conventions aren’t exactly the same. At any rate, I think that the definitions should be consolidated to a single section/location of either the report or the OIP.
Max Liquidity Ratio: I may be misremembering but I think that the current metric for liquidity is 20% of the market cap. Does a liquidity ratio of 14.375% result in more or less than the current POL in Balancer at the launch of RBS?
The report states, “max liquidity ratio: Establishes the treasury ratio between liquidity and reserves. The treasury will dynamically adjust its composition based on this ratio.” Further down, the report explains that the three options were to use TWAMM (not available right now), rebalance manually with buy/sell orders and rebalance by minting/burning LP shares. Just to clarify, at launch, RBS will use the third option of minting/burning LP shares which will be handled manually by the policy multisig?
Ask/Bid Factor (aka Reserve Factor) & Cushion Factor: Is this saying that 9.5% of the Treasury reserves will be used for both the upper and lower “market operation” zones. For example if there’s $100M in the Treasury, this would mean that $9.5M is available to the upper wall, the upper cushion, the lower cushion and the lower wall. Correct? If so, 30.75% of that $9.5M, or $2.9M, would be used for the cushions.
Let’s say that the price goes to the upper cushion zone and $1M worth of Reserve bonds are sold before the price goes down. In this scenario, reserves would have increased by $1M. Does that mean that there is now $3.9M available for the lower cushions or is the budget recalculated to account for the increase in reserves (i.e. reserves now = $101M * 9.5% = Reserve Factor of $9.59M and Cushion Factor of $2.95M)?
Cushion/Wall Offset: I know that this was discussed in the Policy channel earlier today, but I think that it should be clear that these are measured from the 30dma. So the total spread from wall-to-wall is 59% and from cushion-to-cushion is 33.5%.
Reinstate Window: 18/21 epochs is roughly the same as 6/7 days, correct?
Budget for Keepers:
Who runs the keepers?
Is the OHM meant to reimburse the keeper’s gas cost? If so, why not pay them with ETH?
Where is the OHM coming from? DAO Treasury?
Assuming the OHM is meant to reimburse the keeper’s gas, what happens if there’s a significant spike in gas prices which depletes the OHM for the keepers? Do the keepers stop or will they run on credit until the contract is funded? If they stop, what are the implications?
Given that the function performed by the keepers is “critical to running RBS”, should an interruption in keeper operation be added to the list of emergency stop triggers?