Blocks for Revenue Auction Settlement

Overview

This indicator tracks how long it takes for the auctions that generate revenue for stRSR holders to settle. When the Reserve protocol needs to trade one asset for another to pay the stRSR holders for securing an RToken, it performs auctions to sell the accrued rewards to pay the holders.

How can I use it?

Given the design of Reserve’s auctions, auctions will often not settle in the first several blocks after the auction starts. Therefore, auctions that take many blocks to settle are to be expected. However, if auctions take an irregular amount of time to settle compared to previous auctions, this can signal that users believe the assets being auctioned are overvalued. If the RToken has difficulty settling auctions to pay the stRSR holders, these holders might decide to unstake their RSR. This would reduce the coverage and collateralization ratio for the RToken which can present increased risks for RToken holders.