Rai Reflex Index

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Discover Rai Reflex Index's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Rai Reflex Index?

The Rai Reflex Index (RAI) is a decentralized, non-pegged stablecoin backed by Ethereum (ETH) collateral. It operates on the Ethereum platform and is designed to be less volatile than cryptocurrencies like Ether and Bitcoin. RAI's value is determined by market forces rather than being pegged to a specific fiat currency, and it incorporates an embedded interest rate mechanism to maintain stability.

How is Rai Reflex Index used?

Rai Reflex Index (RAI) is a decentralized, non-pegged stablecoin that can be used in various ways. Here are some key aspects of how RAI is utilized:

  1. Minting: RAI can be minted by using ETH as collateral on the Reflexer platform. This allows users to create a stable asset without being pegged to a fiat currency, offering a unique alternative to traditional stablecoins.

  2. Market Operations: RAI's price is influenced by positive and negative interest rates, which helps maintain market stability. This mechanism allows for a floating price, making it distinct from other stablecoins.

  3. Investment and Trading: RAI can be bought and sold on various exchanges, including Coinbase, where users can create an account, add a payment method, and start trading.

  1. Decentralized Finance (DeFi): As a decentralized stablecoin, RAI can be used in DeFi applications, providing a reliable low-volatility alternative for sophisticated users who value censorship resistance and decentralization.

Overall, RAI offers a unique combination of decentralization, floating price, and ETH collateralization, making it an attractive option for those seeking a stable asset with distinct features.

How do I store Rai Reflex Index?

To store Rai Reflex Index (RAI) tokens, you need to choose a reliable wallet that supports the token. Here are some options:

  • Trust Wallet: This wallet is compatible with the Ethereum network and can be downloaded as a Chrome extension or a mobile app. Ensure you download the official version from the Trust Wallet website.
  • Atomic Wallet: This wallet supports Rai Reflex Index and allows you to manage RAI, Ethereum, XRP, Litecoin, XLM, and over 1,000 other coins and tokens. It is available for both desktop and mobile devices.

When setting up your wallet, make sure to keep your seed phrase safe and note your wallet address, as you will need it for future transactions.

How to buy Rai Reflex Index?

To buy Rai Reflex Index (RAI) tokens, you can follow these steps:

  1. Choose a Centralized Exchange (CEX):

    • Select a reliable and trustworthy exchange that supports RAI purchases, such as KuCoin or Coinbase.
    • Consider factors like ease of use, fee structure, and supported payment methods.
  2. Create an Account:

    • Register on the exchange's website or app, providing the required information.
    • Enable two-factor authentication (2FA) for added security.
  3. Verify Your Identity:

  • Complete Know-Your-Customer (KYC) verification, which may require government-issued identification documents.
  • This step varies based on your nationality and region.
  1. Add a Payment Method:

    • Follow the exchange's instructions to add a credit/debit card, bank account, or other supported payment methods.
    • Ensure you understand the fees associated with each payment method.
  2. Buy RAI:

    • Use fiat currency to purchase a popular cryptocurrency like USDT, ETH, or BNB if supported.
    • Then, exchange this cryptocurrency for RAI on the exchange.

Alternatively, you can also buy RAI through a decentralized exchange (DEX) by connecting your crypto wallet and following the DEX's specific procedures.

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History of Rai Reflex Index

The Rai Reflex Index (RAI) is a cryptocurrency that has been tracked by various sources, providing insights into its historical performance. Here is a summary of its history:

Historical Prices
  • 2023: The open price of RAI in 2023 was $2.75. By December 7, 2023, the open price had increased to $2.79, indicating a 1.34% rise. The high price for the year was $2.86 on December 7, 2023, while the lowest price was $2.75 on November 8, 2023.
Market Capitalization
  • Market Cap: The market capitalization of RAI has fluctuated over time. As of the latest data, the market cap was $5.68 million.
Trading Volume
  • Trading Volume: The 24-hour trading volume of RAI was $83,388, indicating a change of 0.62%.
Circulating Supply
  • Circulating Supply: The current circulating supply of RAI is 2.05 million coins.
Historical Trends
  • Price Trends: RAI has shown both increases and decreases in its price over time. For example, between November 8, 2023, and December 7, 2023, the high price rose by 3.01%, and the lowest price escalated by 1.36%.
Market Position
  • Rank: RAI currently ranks #1750 among all known cryptocurrency assets, indicating its relative popularity based on market capitalization.
Additional Information
  • Description: RAI is a non-pegged, ETH-backed stable asset. It is useful as more stable collateral for other DeFi protocols or as a stable asset with an embedded interest rate.

These historical data points provide a comprehensive view of the Rai Reflex Index's performance and market position over time.

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How Rai Reflex Index works

The Rai Reflex Index (RAI) is a non-pegged stablecoin backed by Ethereum (ETH) that operates on the Reflexer platform. Unlike traditional stablecoins pegged to fiat currencies, RAI's value is determined by supply and demand in the market. Here's a detailed overview of how it works:

Key Components
  1. Market Price: The current price at which RAI is traded on exchanges.
  2. Redemption Price: The target price set by the protocol, which influences the market price.
  3. Redemption Rate: The rate at which RAI is devalued or revalued to maintain the target redemption price.
Mechanism

The Reflexer platform allows users to mint RAI by providing ETH as collateral. This process is similar to how central banks manage their currencies. The protocol adjusts the redemption rate to influence the market price, ensuring that RAI remains stable. When the market price deviates from the redemption price, the protocol either devalues or revalues RAI to bring the prices back in line.

Supply and Demand Dynamics

The supply and demand for RAI are influenced by two main groups:

  1. SAFE Users: Those who mint RAI using their ETH collateral. They benefit when RAI appreciates in value.
  2. RAI Holders: Those who hold, speculate on, or use RAI in other protocols and apps. They benefit when RAI depreciates in value.
Flexibility and Discretion

The protocol's ability to adjust the redemption rate and redemption price allows it to respond to market changes and maintain stability. This flexibility also gives the protocol discretion to attract or repel capital as needed.

Global Settlement

In the event of a significant imbalance between the market price and redemption price, the protocol can initiate a Global Settlement. This process adjusts the target redemption price to bring the market price back in line, ensuring the long-term stability of RAI.

Fees and Usage

Using the Reflexer platform is free, but users must pay transaction fees when interacting with the smart contracts. Additionally, fees associated with RAI, such as the Stability Fee and Redemption Rate, apply depending on the features used.

Governance

The Reflexer team aims to minimize governance, striving for a robust system that can operate autonomously without human intervention. This approach is designed to reduce centralization concerns and create a truly crypto-native stablecoin.

Use Cases

RAI is useful for various purposes, including:

  • Reducing volatility in DeFi protocols
  • Longing or leveraging ETH positions
  • Short-term trading
  • Decoupling stablecoin activity from government debt and centralization

Overall, RAI's unique mechanism and flexibility make it an attractive option for those seeking a stablecoin that is not pegged to fiat currencies and is backed by a decentralized, transparent system.

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Rai Reflex Index's strengths

The token Rai Reflex Index (RAI) has several strengths that make it an attractive option for investors and users:

  1. Flexibility and Discretion: RAI's monetary policy allows for flexibility in managing its price. The protocol can devalue or revalue RAI in response to market changes, which helps maintain stability. This discretion also enables the protocol to adjust its target exchange rate to attract or repel capital as needed.

  2. Low Volatility: RAI is designed to dampen exposure to ETH's price moves, making it a reliable low-volatility alternative to conventional stablecoins. This stability is particularly useful for sophisticated users who understand its intricacies.

  3. Decentralized and Censorship-Resistant: RAI is an experimental decentralized stablecoin, which means it is not controlled by a central authority and is resistant to censorship. This feature appeals to users who value autonomy and security in their financial transactions.

  1. ETH-Backed Collateral: RAI is solely backed by ETH collateral, which provides a robust foundation for its value. The high collateralization ratio of over 350% ensures that the token is well-supported by its underlying assets.

  2. Multiple Use Cases: RAI offers a range of use cases, including portfolio diversification, a source of yield, DeFi collateral, and as a DAO reserve asset. This versatility makes it a valuable asset for various applications in the decentralized finance (DeFi) ecosystem.

  3. Managed Float Regime: RAI's managed float regime allows its price to be determined by supply and demand. This mechanism helps maintain stability and incentivizes both SAFE users and RAI holders to bring the market price back to the target rate.

These strengths contribute to RAI's appeal as a stable and versatile asset in the DeFi space.

Rai Reflex Index's risks

Rai Reflex Index (RAI) is an experimental decentralized stablecoin with a floating price, not pegged to a fiat currency. It is forked from MakerDAO’s DAI and is substantially similar, except for its free-floating price and the use of positive and negative interest rates to influence the market price of RAI. RAI is solely backed by ETH collateral, with a collateralization ratio of over 350%.

Financial Risks
  • Stability Risks: RAI's stability is maintained through two methods: liquidation and redemption rates. Liquidation ensures that the value of collateral in vaults is always greater than the value of RAI borrowed by SAFE creators. Redemption rates, similar to interest rates, are adjusted to influence demand and supply for RAI. However, RAI can only be redeemed for collateral when the Emergency Shutdown Module is activated, which may limit liquidity under normal operations.
  • Market Feedback Risks: RAI's daily volatility is relatively low at 0.41% over a 180-day period. It also shows no deviation below peg during the 5 worst-performing days for BTC in a 180-day period. This indicates that RAI is less susceptible to market downturns.
  • Management Risks: RAI receives a low risk rating from InvestorsObserver analysis, indicating that it is less susceptible to manipulation by limited trading. The protocol's management is considered to be very low risk, with a score of 0.84.
  • Decentralization Risks: RAI has a high decentralization score of 0.90, indicating very low risk. This is due to its decentralized nature and the use of ETH collateral, which reduces the risk of censorship and custodian risks.
  • Governance Risks: RAI's governance is considered to be low risk, with a score of 0.70. This is due to its decentralized governance structure and the presence of measures to prevent governance attacks.

Overall, RAI's financial risks are relatively low due to its decentralized nature, high collateralization ratio, and low volatility. However, its liquidity limitations and experimental nature may still pose some risks for investors.

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Did Rai Reflex Index raise funds?

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Rai Reflex Index’s team

  • Stefan Ionescu: Co-founder and CEO of Reflexer Labs, responsible for leading the development of RAI. He is a solidity developer with a background in coding and has been involved in the DeFi space since 2017.
  • Ameen Soleimani: Co-founder of Reflexer Labs, assisting with growth efforts on a part-time basis. He is also the founder of SpankChain and has experience with governance-minimized stablecoins.

Whalee AI

The fundamental analysis assistant for crypto value investors.

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