Reflexer Labs rolled out the RAI Reflex Index this week. The Ethereum based stable coin RAI is not pegged on any asset and managed by an on-chain autonomous controller.
The RAI is designed to offer stability autonomously using algorithms and does not require any human intervention.
Reflexer Labs stablecoin RAI Launched on Ethereum Mainnet.
The team behind the index invested almost a year in the research and development of the index. The mainnet was tested for three months before the launch. As per the firm, RAI is a prototype to showcase the possible decentralized nature of stablecoin without any ped. This gives it more autonomy, and the redemption price responds to market conditions. The RAI stablecoin will bring more stability to the decentralized finance markets as it is not tied to any fiat currency. As per the RAI cofounder Ameen Soleimani “RAI is an asset-backed only by ETH, governance-minimized, and programmed to maintain its own price stability without needing to peg to an external price reference like the USD.”
Soleimani said that RAI could be of great significance to the Ethereum ecosystem and be highly useful for the Decentralized finance industry. He even expressed that RAI can become the Ethereum Standard, a native unit for an account on Ethereum.
The RAI stable coin went live on Ethereum Mainnet as announced by the company and is now available on Uniswap. The founder of Reflexer Labs, Stefan Ionescu, noted that the assets don’t need to be pegged on anything to be stable. He further added that it is essential to comprehend that DeFi should be not dependent on the “fate of the US Dollar”. He further said that RAI is a step towards the direction and can offer a genuine alternative to Ethereum DAI for DeFi.
The Reflexer lab’s team used Proto RAI tokens during the testnet phase. The PRAI token price did not fluctuate more than 4% even though the ETH price fluctuated by more than 250 percent during the same period.
Ionescu explained that “PRAI’s redemption price started at $2.015 and then floated between $1.937 and $2.06. This happened with no professional market makers, almost no liquidity and a lack of arbitrageurs, which would have made PRAI significantly more stable”
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