Please note: Whilst this token may be described as a ‘stable’ asset its value is not designed to be pegged to any fiat currency (e.g. Pounds Sterling or US dollars) and its price may therefore fluctuate. This token relies on complex algorithmic arrangements and is collateralised by Ether (ETH), meaning its value could decline or become volatile. Please visit https://www.coinbase.com/asset-risks for more information on asset risks.
RAI is an Ethereum token. The RAI-USD exchange rate is determined by supply and demand while the protocol that issues RAI tries to stabilize its price by constantly de- or re-valuing it. The supply and demand mechanic plays out between two parties: SAFE users (those who generate RAI with their ETH) and RAI holders (those who hold, speculate on or use RAI in other protocols and apps).
What Is Rai Reflex Index (RAI)?
RAI is an Ethereum-based token designed for price stability. Its value in relation to the US dollar fluctuates based on supply and demand. The protocol governing RAI continuously adjusts its value to stabilize its price. This supply and demand dynamic involves two main parties: SAFE users, who generate RAI with their ETH, and RAI holders, who either hold RAI, or use it in various protocols and applications. RAI's primary goal is to mitigate Ethereum's price volatility and serve as a more dependable form of collateral in DeFi applications.
Reflexer is a platform where users can use their crypto assets as collateral to create reflex indexes, which are non-pegged stable assets.
Rai Reflex Index (RAI) is the first ‘stablecoin’ on the Reflexer platform, inspired by Maker. RAI is unique because it's not pegged to any specific value but is solely backed by ETH collateral. Similar to RAI's overarching goal, it seeks to provide a more ‘stable’ alternative to Ether as collateral in the DeFi space. Reflexer aims to establish a governance-minimized and non-pegged ‘stable’ asset ecosystem that operates independently of traditional currencies. To achieve this, Reflexer has developed the GEB protocol, which utilizes a smart contract framework incorporating a PID controller for autonomous stabilization. The PID controller is a type of control system that influences future values in a time series. It adapts continuously, even without predictions, with "P" referring to the current measurement, "I" to past values, and "D" to expected future changes. The RAI platform intends to employ this PID controller to maintain price stability in the market.
RAI's monetary policy is governed by an on-chain, autonomous controller, offering flexibility. This means that the protocol can devalue or revalue RAI in response to market price changes.
RAI has several intended use cases, including portfolio diversification to provide less exposure to ETH's price fluctuations, a source of yield for traders when RAI's market price aligns with the redemption price, acting as alternative DeFi collateral or complementing ETH in DeFi protocols due to its ability to dampen Ether's price movements, and serving as a reserve asset for DAOs seeking exposure to ETH without being overly impacted by market swings.
History of Rai Reflex Index (RAI)
Reflexer Labs are the creators of RAI . The Reflexer Labs team includes Ameen Soleimani and Stefan Ionescu. Ameen Soleimani is the cofounder of SpankChain, an Ethereum -based micropayment processor, and Stefan Ionescu worked previously at Binance X in research and development.
How to Buy Rai Reflex Index (RAI) Token
The RAI token can be traded at an exchange, including Coinbase.
