R Token Asset Distribution

Overview

This indicator tracks the distribution of collateral assets that are backing the RToken. Monitoring changes in the basket share of each collateral can help users evaluate the risks associated with the RToken.

How can I use it?

Changes to the distribution of collateral backing the RToken is commonly a signal for two types of events happening.

The first is that there was a governance proposal that passed deciding to change the backing of the asset. In this case it is beneficial for RToken holders to then reevaluate their risk preferences in relation to the new collateral backing to determine if they want to continue holding the token.

The second can be if one or more collateral assets depeg from their underlying token value and start to take up a larger share of the distribution to maintain backing of the RToken. Events such as these are important for users to track to decide if they believe the depeg event will be permanent or temporary. This can also provide an arbitrage opportunity for users that can rebalance the collateral distribution.