What makes Reflexer unique?

What makes Reflexer unique is RAI, its native stablecoin. Reflexer’s RAI returns crypto to its roots drawing inspiration from the early days of stablecoins to offer crypto-native stability. RAI is an ETH-backed, non-pegged stable asset known as a reflex index whose monetary policy is managed by an on-chain, autonomous controller.

RAI boils down to this: a volatility-reduced representation of ETH. It’s designed to float similar to other currencies and not be pegged to anything. Reflexer relies on a set of protocol parameters including borrowing power and market price to determine the price RAI can be redeemed for. RAI was launched with an arbitrary selected starting redemption price of $3.14.

From this point on, RAI continued to float while it is managed by the protocol’s on-chain controller, though it has later continued to stabilize around a redemption price of ~$3.

Reflex indexes like RAI are designed to reduce volatility, shielding users against major and sudden moves in the market like the events witnessed on Black Thursday. On a technical level, the system behind RAI is a modified fork of the MakerDAO multi-collateral DAI protocol (MCD), with a few distinct changes.

Some of these changes include autonomous feedback mechanisms that control user incentives, simplified variable names, more flexible collateral auctions, long-term bounded governance, optional Safe insurance, and more.