Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: Malam90 on February 21, 2021, 03:33:23 AM
-
RAI stablecoin is not pegged to fiat but ETH,
Dynamic interest rates keep prices stable.
RAI aims to dethrone centralized stablecoins for DeFI.
A stablecoin backed by Ethereum called RAI has launched this week with the aim of becoming a stable reserve asset for DeFi.
The Rai Reflex Index, a product of Reflexer Labs, was launched on Feb. 17 after a year of research and development. According to the announcement, RAI is an Ethereum-backed, non-pegged stable asset. Its monetary policy is managed by an on-chain, autonomous controller.
RAI has been programmed to maintain its own stability using algorithms and virtually no human input. In the words of its creators, it is a “Money God.”
Prior to launch, Reflexer Labs carried out a three-month testnet. It used Proto RAI to demonstrate how a stablecoin can lack a peg and instead have its redemption price float in response to market forces; Source (https://beincrypto.com/ethereum-backed-stablecoin-rai-launches-mainnet/)
-
I still have a rather poor idea of how this Rai stablecoin would work if backed by ethereum only. I do not yet understand the very mechanism of Rai price stabilization, which is also carried out offline.
However, it should be admitted that cryptocurrency is developing very quickly and if this is possible, then this mechanism will work. After all, everyone is now working on improving the cryptocurrency thanks to the open source code of the cryptocurrency.
-
I still have a rather poor idea of how this Rai stablecoin would work if backed by ethereum only. I do not yet understand the very mechanism of Rai price stabilization, which is also carried out offline.
Maybe Rai will be used the elastic supply machanism to become stable into this market as it's backed by ethereum and price of ethereum has always been fluctuating. I read the main article from the source link and get to know that their will be redemption machanism which might indicate to be a Seigniorage Coins by that machanism. Let me know what you or things about this.
-
I still have a rather poor idea of how this Rai stablecoin would work if backed by ethereum only. I do not yet understand the very mechanism of Rai price stabilization, which is also carried out offline.
Maybe Rai will be used the elastic supply machanism to become stable into this market as it's backed by ethereum and price of ethereum has always been fluctuating. I read the main article from the source link and get to know that their will be redemption machanism which might indicate to be a Seigniorage Coins by that machanism. Let me know what you or things about this.
To have a stable price, an asset must be backed by a more stable asset. If we are talking about Ethereum, then the whole idea may not take place, although perhaps we do not have all the information about Ethereum, which will surprise us many times in the future, but nevertheless the team can allow users to provide a pool of liquidity, which will make it possible to maintain price stability within a specific framework.
-
-
I tried to read the references given by Op and there really needed more to understand how RAI is a stable coin pegged with Ethereum.
So this RAI (Reflex Index) is the latest cryptocurrency platform to be typhooned and stabilized with Ethereum, whether it's price or supply, but usually I think this new platform is very supportive to reduce cheap transaction costs than transactions using Ethereum core.
-
I just looked at the RAI price in the CoinMarketCap table. The price of this stablecoin has climbed from $ 0.019 to $ 3.12 now. It is very strange, given such price fluctuations, to consider it a stablecoin. Maybe in the future something will change and RAI will become more stable, but now I would not say that it is a stable coin.