- Ethereum-based stablecoin RAI has gone stay on its mainnet.
- Not like its many friends, RAI will not be pegged to something particularly.
- Within the close to future, the builders plan to launch a liquidity mining program and an “ungovernance token.”
Blockchain startup Reflexer Labs has introduced that RAI, a brand new kind of stablecoin that’s not pegged to any particular fiat foreign money, has gone stay on the mainnet, per an announcement yesterday.
“You don’t have to peg to something to be able to be steady. Crucial factor to know is that can and ought to be indifferent from the destiny of the US Greenback. RAI is a primary step in that route,” noted Reflexer Labs founder Stefan Ionescu.
Stablecoins are cryptocurrency tokens with costs pegged—or tied—to the present market worth of a selected asset or foreign money. The commonest stablecoins is Tether (USDT), which is pegged to the US greenback. Which means each token is designed to be price $1, with market makers sustaining the alternate fee.
What makes RAI distinctive is that it’s not pegged to something. Regardless of this, its creators argued that it could actually nonetheless retain a steady value. The plan is to make use of an autonomous on-chain controller—some sort of decentralized entity—to keep up RAI’s value no matter ETH’s present market price. The entire level is that its value stays roughly the identical, no matter different property.
Reflexer co-founder Ameen Soleimani—who can be the CEO of SpankChain—argued that RAI might have an even bigger objective within the Ethereum ecosystem. He mentioned that the token could possibly be very helpful within the decentralized finance (DeFi) business, and will doubtlessly develop into a local unit of account for the Ethereum ecosystem, generally known as the Ethereum Customary.
He added that, past that, it may need even higher ambitions.
“Our aspirations for RAI, nonetheless, are extra profound — if RAI fulfills its objective inside DeFi and begins to earn international adoption, it might show to be a viable answer to the Triffin Dilemma, and convey credible neutrality to the administration of a steady international reserve asset, a global public good,” he mentioned.
Holding the RAI value steady
Throughout the testing section that was performed utilizing the so-called “Proto RAI” (PRAI) tokens, the asset’s value fluctuated by not more than 4% whereas the value of ETH itself surged from $400 to $1400 over the identical interval.
“PRAI’s redemption value began at $2.015 after which floated between $1.937 and $2.06. This occurred with no skilled market makers, nearly no liquidity and a scarcity of arbitrageurs which might have made PRAI considerably extra steady,” defined Ionescu.
Principally, when PRAI’s market value remained above the redemption value, the latter would begin happening—and vice versa.
“Proto RAI additionally confirmed for the primary time how a steady asset can lack a peg and as a substitute have its redemption value float in response to market forces,” Ionescu added.
Within the subsequent couple of weeks, the builders plan to launch a liquidity mining program and reveal Refelexer’s “ungovernance token,” dubbed FLX. In the meantime, RAI’s smart contract and the Uniswap RAI/ETH market are already stay.
Moreover, crypto fans can already start minting RAI through Reflexer’s dashboard—however there’s a catch. Whereas the registration is free by itself, at press time, it required a roughly $150 ETH transaction charge for creating the account on the Ethereum blockchain. However there’s little RAI can do about that.