{"id":182517,"date":"2021-02-19T05:47:09","date_gmt":"2021-02-19T02:47:09","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/stablecoin-rai-launches-a-pure-decentralized-alternative-for-defi\/"},"modified":"2021-02-19T05:47:09","modified_gmt":"2021-02-19T02:47:09","slug":"stablecoin-rai-launches-a-pure-decentralized-alternative-for-defi","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/stablecoin-rai-launches-a-pure-decentralized-alternative-for-defi\/","title":{"rendered":"# Stablecoin RAI launches, a pure, decentralized alternative for DeFi"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a26eafa7a1ca\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a26eafa7a1ca\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/stablecoin-rai-launches-a-pure-decentralized-alternative-for-defi\/#How_is_RAI_different\" >How is RAI different?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Stablecoin RAI launches, a pure, decentralized alternative for DeFi <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvYThlMjg0YjktZTczYy00NWFmLWIzNTEtNzgyOTBiYmZiNjdiLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>New Ethereum-backed stablecoin RAI hopes to be the savior of the DeFi sector by providing a truly decentralized stablecoin alternative.\u00a0<\/p>\n<p>Developed by blockchain startup <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/reflexer-labs\/rai-is-live-f151490b1b02\">Reflexer Labs<\/a>, RAI is not pegged to any fiat currency and its monetary policy is managed by an on-chain, autonomous controller. It&#8217;s a fork of Maker&#8217;s DAI. RAI co-founder Ameen Soleimani explained:<\/p>\n<blockquote><p>\u201cRAI 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.\u201d<\/p><\/blockquote>\n<p>Soleimani <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ameensol.medium.com\/a-money-god-raises-rai-is-live-on-ethereum-mainnet-f9aff2b1d331%5C\">believes<\/a> that RAI, which he dubbed \u201cA Money God,\u201d has far greate potential than simply improving the DeFi sector, adding:<\/p>\n<blockquote><p>\u201cOur aspirations for RAI, however, are more profound \u2014 if RAI fulfills its purpose within DeFi and starts to earn global adoption, it could prove to be a viable solution to the Triffin Dilemma, and bring credible neutrality to the administration of a stable global reserve asset.\u201d<\/p><\/blockquote>\n<p>The Triffin Dilemma consists of potentially contradictory incentives which arise when an asset, like the USD, serves both as national currency and for international reserves.<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/reflexer-labs\/rai-is-live-f151490b1b02\">Announced<\/a> today, the asset has launched on the Ethereum blockchain and is available via Uniswap v2, with liquidity mining pools set to be announced in the coming weeks. Prior to a strong liquidity pool, the team admitted that \u201cthe controller will be weaker than usual.\u201d<\/p>\n<p>While it&#8217;s a stable, it&#8217;s not pegged to the value of USD and initially, RAI\u2019s redemption price will be set at $3.14. One im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te use-case in decentralized finance, or DeFi, the team predicts will be a method to avoid liquidation on strong price fluctuations for Ethereum and other cryptocurrencies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_is_RAI_different\"><\/span>How is RAI different?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Stablecoins like Tether (USDT) are centralized and pegged to US dollars, while even Maker\u2019s DAI accepts centralized stablecoin USDC as collateral. This makes true decentralization finance acolytes concerned as centralized coins can be censored. RAI only uses ETH as collateral.<\/p>\n<p>RAI\u2019s ability to maintain a stable price despite fluctuations in the value of its ETH backing revolves around its PID Controller \u2014 a control loop mechanism similar to a car\u2019s cruise control. <\/p>\n<p>The asset has two prices, a redemption price and a market price. When the market price deviates from the redemption price, an interest rate for those who have staked Ethereum is set to oppose the price move, incentivizing users to return RAI to the target price.<\/p>\n<p>Soleimani, who is also the CEO of the crypto cam site SpankChain <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ameensol.medium.com\/a-money-god-raises-rai-is-live-on-ethereum-mainnet-f9aff2b1d331\">explained<\/a> that, \u201cIt works kind of like a spring: the further the market price of RAI moves from the target price, the more powerful the interest rate, and the greater the incentive to return RAI to equilibrium.\u201d<\/p>\n<p>Soleimani added that the redemption price, also known as the initial target price, does not really matter because, \u201cRAI only cares about relative stability.\u201d<\/p>\n<p>During the testing phase conducted throughout 2020, which used Proto RAI tokens, the asset\u2019s price managed to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/reflexer-labs\/rai-is-live-f151490b1b02\">maintain<\/a> a volatility level of 4% or lower with an average price of around $2. During the same period, Ether\u2019s price grew by more than 250%.<\/p>\n<p>Last week, Reflexer Labs <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/reflexerfinance\/status\/1359898782067003393?s=20\">announced<\/a> a $4.14 million <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> A funding round led by Pantera Capital and Lemniscap. This round was preceded by an investment raise of $1.68 million in August 2020 led by Paradigm.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/stablecoin-rai-launches-a-pure-decentralized-alternative-for-defi\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Stablecoin RAI launches, a pure, decentralized alternative for DeFi &#8221; New Ethereum-backed stablecoin RAI hopes to be the savior of the DeFi sector by providing a truly decentralized stablecoin alternative.\u00a0 Developed by blockchain startup Reflexer Labs, RAI is not pegged to any fiat currency and its monetary policy is managed by an on-chain, autonomous&#8230;<\/p>\n","protected":false},"author":1,"featured_media":182518,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvYThlMjg0YjktZTczYy00NWFmLWIzNTEtNzgyOTBiYmZiNjdiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74983,74868,74891,75493,4965,36041],"class_list":["post-182517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-decentralization","tag-defi","tag-ethereum","tag-stablecoin","tag-technology","tag-tether"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/182517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=182517"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/182517\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/182518"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=182517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=182517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=182517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}