As we continue to add features and improve on the overall ecosystem of ReserveLending®, we wanted to take a moment to talk about something exciting coming to the platform — the implementation of a reserve fund.
A reserve factor will be implemented on or around June 25, 2021 to help ensure the liquidity of the eRSDL token, as well as provide other incentives. The reserve factor set will take into consideration the desire to add new features, the platform’s economics, and the competitive landscape.
Reserve funds will be allocated to a collector contract and will rely on a reserve factor strategy that is very competitive.
Each vToken contract and underlying collateral will have a reserve factor from a basis of 0–90%. This means there will be a reserve that the protocol captures between the spreads of borrowing and supplying. These reserve factors are added to the protocol and can be used for a variety of things.
We are looking to use the reserve to bolster and incentivize participant behavior to help encourage and increase platform participation. Each contract and underlying collateral will have a reserve factor from a basis of 0–90%. This means there will be reserves that the protocol captures between the spreads of borrowing and supplying.
While we are still working out all of the details, we want to invite our eRSDL holders to provide feedback on the existence of a reserve pool, potential uses, concerns, and overall sense of our commitment to continually improving the platform itself.