RAI is Live

Stefan Ionescu
Published in
5 min readFeb 17, 2021


Crypto native stability backed by ETH and available for all

After almost a year of testing, simulations and building, we’re thrilled to announce the launch of RAI! RAI is an ETH backed, non pegged stable asset whose monetary policy is managed by an on-chain, autonomous controller. You can start to mint RAI today using our dashboard. RAI was deployed at this address and the Uniswap v2 RAI/ETH market is here.

Prior to this launch, Proto RAI, our mainnet demo, ran smoothly for almost 3 months and was shut down on 25th of January. We’ve received great support from our community who put more than $612K worth of ETH in the demo and minted almost 52K PRAI.

Proto RAI also showed for the first time how a stable asset can lack a peg and instead have its redemption price float in response to market forces. 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. Moreover, during the PRAI demo, ETH went from about $400 to $1400, a 350% increase, while PRAI’s redemption price fluctuated less than 4%.

To summarize PRAI’s behaviour, when its market price was consistently above the redemption price, redemption would start to go down. Similarly, if the market price was consistently below the redemption price, redemption would start to go up. You can read more about how the system behind P/RAI works in our FAQ.

Liquidity Incentives

In the next couple of weeks we will announce our liquidity mining program for the RAI/ETH Uniswap v2 pool. At that point, we will also reveal the Reflexer ungovernance token, FLX.

In the meantime, we’re not saying that there will be retroactive mining rewards for the initial cohort of RAI/ETH LPs, but we’re also not saying there won’t be.

Before the liquidity mining announcement, you can test our Kovan liquidity mining dashboard.

Kovan Liquidity Mining Interface

Phased Controller Launch

For the time being and until RAI has enough liquidity on Uniswap v2, the controller will be weaker than usual. We will soon update the community with the minimum amount of liquidity that must be on exchanges so that the controller is not easy to manipulate. Until then, we encourage you to check our PID risks documentation before using RAI.

RAI Parameters

RAI was launched with a starting redemption price of $3.14. From this point on, RAI will continue to float while it is managed by the protocol’s on-chain controller.

In the foreseeable future, we plan to set an annual RAI borrow rate between 2–4%. We believe that a rate in this range will be able to provide the system with enough capital so it pays keepers to maintain oracles and the controller as well as fill the surplus buffer.

You can read more about the rest of the parameters in our docs.

Get Involved

To stay up to date with next steps we recommend you join our Discord!

If you’re running keepers and would like to liquidate underwater positions, check our docs and send us a message. If you’re a developer, you can build your own insurance solution for RAI positions or check the other use-cases that take advantage of RAI’s repricing mechanism. If you’re a market maker who wants to learn more, shoot us an email.


Proto RAI has been beta tested for almost 3 months on mainnet Ethereum. The core contracts were audited by OpenZeppelin and the helper contracts (oracles, PID etc) were audited by Quantstamp and Solidified. However, audits do not guarantee that smart contracts are bug free so we advise everyone to be cautious when using the protocol.

We have an open bug bounty program where you can earn up to $30K. We also wrote here in more detail about major risks associated with using RAI.


Find out more about RAI and join our community!

Discord | Twitter | App | Website | Docs | Github

Legal Disclaimers

This announcement has been written and published by Reflexer Labs, Inc., a for-profit Delaware corporation (“Reflexer Labs”). The directors and officers of Reflexer Labs owe fiduciary and contractual duties solely to Reflexer Labs’ investors. RAI confers no information, voting, economic, fiduciary, contract or other rights against or with respect to the assets or personnel of Reflexer Labs. The interests of Reflexer Labs and its directors, officers and investors may differ materially from the interests of RAI holders and other RAI system participants.

Each component of the GEB Protocol and RAI System is licensed for use to the public under the license set forth in the corresponding repository at github.com/reflexer-labs. Such licenses are subject to important warranty disclaimers and limitations of liability. To the maximum extent permitted by applicable law, all such software is being provided on an as-is, where-is basis, with no representations or warranties being made to RAI users or other RAI system participants and with no liability to Reflexer Labs or any other person involved in the development of the GEB Protocol or RAI System. The statements set forth in this announcement also are not intended to be representations, warranties, guarantees or assumptions of duty or liability of any kind, and Reflexer Labs hereby disclaims the foregoing and will not be liable for any damages arising from use of the GEB Protocol, RAI System or RAI. In the event of any conflict or inconsistency between this announcement or any other communication and the terms of any software license involved in the GEB Protocol or RAI System, the terms of the software license shall govern to the exclusion of this announcement and such other communications.

The forward-looking statements in this announcement are subject to numerous assumptions, risks and uncertainties which are subject to change over time. Such assumptions, risks and uncertainties could cause actual results or developments to differ materially from the results and developments anticipated by us. Even if our anticipated results and developments are realized, such results and developments may nevertheless fail to achieve any or all of the expected benefits anticipated by this announcement. We reserve the right to change the plans, expectations and intentions stated and implied herein at any time and for any reason or no reason, in our sole and absolute discretion, and we undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

This announcement is not intended to provide legal, financial or investment or other advice and we recommend that you do not rely on, and do not make any financial or other decision based, on this announcement.