Upausing RDOC Deposits

As many of you may know, RDOC deposits to the aggregator have been paused for some time now. Currently, RDOC is not available in the aggregator, and deposits are still on hold. With the recent development of the fixed staking contract and the ability to use Bitocracy again, it’s time to discuss and decide how to proceed with RDOC.

The biggest question is whether we should unpause RDOC deposits. It’s not a straightforward decision, as there are several aspects of RDOC that need to be evaluated:

  1. RDOC is a crypto collateralized stablecoin - an algorithmic stablecoin.
  2. RDOC is redeemable for RIF, which is tradable on several centralized exchanges: Binance, MEXC, BingX, BKEX, and SOVRYN DEX.
  3. 96% of RIF is already in circulation. On-chain liquidity and trading volumes for RIF are currently low.
  4. Both RDOC and RIF have very limited use cases.
  5. RDOC does not offer an opportunity to earn yield on it.
  6. If we decide to enable RDOC deposits, we should consider setting up a cap for it. This is something that will also be included in the Balancing Curves.

I personally would like to know what is the plan for RDOC and RIF. I hope that members of the Rootstock community and IOV Labs will participate in this discussion and provide us with quality information and feedback. The Rootstock website has limited information about RDOC, and it would be helpful to know about any future plans involving RDOC and RIF before taking any steps toward unpausing RDOC deposits.

Let’s start a productive and respectful discussion about the future of RDOC in the aggregator. Your input and insights are valuable, so please share your thoughts with us.

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I am slightly suspicious about algorithmic stables.
Last year there was a short-loved attempt at an algorithmic stable in the form of Blindex, which launched stables for USD, GBP and Euro, with plans for Gold as well, and then very rapidly went down to nothing within a couple of months.
In fairness, I think the problem was that they launched too many projects too rapidly without giving time for problems to be sorted, but it has left a nasty taste in my mouth, as well as in my wallet.

Something to note about RDOC is that it is issued by the protocol Riff on Chain, which is a fork of Money on Chain and maintained by the same team. Money on Chain has proven to be a really solid protocol.

The main difference, of course, is the collateral. And having Rif as the asset backing the stable does make it less dependable than Bitcoin itself. In Argentina RDOC can be used through centralized entities to top up debit cards and buy groceries and things like that in any shop. So there are some use cases, but I don’t know how big this market really is.

I will post this forum conversation on the Rootsock channels to see if we can get some people involved with Rif to tell us more about it.

In principle I would like to see RDOC be a part of XUSD, but I do believe a cap should be implemented until we have more information and can be confident enough in it.

As a side note, is good to see the Babelfish forum so active and with so many proposals coming out lately :slight_smile:

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A few points:

  1. I don’t think that RDOC is “algorithmic”. Rather it is crypto-collaterolized. The asset collateral is RIF, which is quite volatile. There also is relatively shallow liquidity available in the on-chain DEX (Sovryn).
  2. I think a significant portion of RIF is held by IOV and its founders. Not sure that 96% in circulation is a fair representation.
  3. I would feel more comfortable with RDOC if there was a clear commitment to providing liquidity from IOV labs. So that we don’t end up in the same place again.
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  1. Yago, thank you for clarifying. I have difficulty finding information on RDOC, such as how the peg is maintained and if overcollateralization is utilized. Unfortunately, Rootstock’s website does not provide sufficient information in this regard. It appears that the amount of RDOC that can be minted is directly proportional to the current RIF price. As of now, 1 RDOC equals approximately 8.33 RIF.

  2. Criculating supply of RIF accoridng to CMC and CG is @ 96% of the RIF. Upon examining on-chain data, I discovered that the top 2 addresses are smart contracts that hold 46.29% of the RIF supply. I’m unsure of the nature of these contracts. I will need to dig deeper into it. It’s possible that this could limit the amount of RIF in circulation. The third address listed as an account holds 11.54% of RIF, while the top 10 RIF holders (including smart contracts) control 81.66% of the supply.

  3. I wholeheartedly agree. This is a mutually beneficial for all parties involved. Maybe even slighltly more beneficial for RDOC users, as we give them exposure to other stablecoins, while we ara unable to earn yield on RDOC.

Wouldn’t it be possible and useful to outsource liquidity for lower cap coins? As I am arguing here: Adding DLLR to BabelFish Aggegator - #15 by Nux

For BF to add some value, from my point of view, the best thing to do is provide cross-chain (high-) liquidity. We might facilitate that by focusing BF pools on a few coins and relying on other DEXs in order to not diminish user experience (such as DOC or RDOC users). Is it possible for BF to be not only a stable coin aggregator but also a dex aggregator? I see so many projects doing that, (Rango DEX, DefiSpot, thorswap etc… ) and it’s super useful.

Bottom line: if outsourcing liquidity elsewhere is possible, I’m against unposing RDOC deposits.

While I don’t think there’s an issue with the liquidity of RDOC, it’s important to consider that we also need liquidity in other stablecoins to support RDOC. The problem with RDOC are limited use cases. The presence of RDOC in the aggregator was a contributing factor to the shortage of other stablecoins. This is because users provide RDOC to the aggregator and then switch to centralized stablecoins on other chains. Moreover, there’s a greater demand for other stablecoins on Rootstock, particularly DOC and DLLR, since they are Bitcoin-backed and offer more use cases. We have to keep in mind that there is constant and significant demand for other stablecoins on ETH and BSC, including USDT, USDC, DAI, and BUSD.

It is worth noting that we’re currently working also on multichain integration, which could give us more exposure to other markets and blockchains. This could be an ideal opportunity to start aggregating other stablecoins.