Reflexer: How the Non-collateralized Stablecoin RAI is Changing the Web3 Currency Ecosystem

Reflexer, as a decentralized currency platform, allows users to mint unpegged stablecoin RAI through ETH. RAI aims to be a self-adjusting, low-volatility decentralized currency, unaffected by external factors. Reflexer’s vision is to build a new monetary system for Web3, enabling users to freely choose the currency they use, rather than being forced to use traditional fiat currency or stablecoins tied to it.

Core Technology

Reflexer's core technology is based on MakerDAO's smart contract system, but there are several important differences:

1. No governance tokens and voting mechanisms, more decentralized and censorship-resistant.

2. Use the "PID controller" algorithm to dynamically adjust the debt ratio of RAI to ETH, keeping RAI within a reasonable price range.

3. There is no fixed stablecoin fee; it is adjusted according to market conditions and the output of the PID controller.

These technologies make Reflexer one of the most advanced and innovative stablecoin solutions in the current crypto space, with RAI being its primary application.

Team and Collaboration

The Reflexer team consists of experienced developers, designers, researchers, and community managers who have extensive backgrounds in the crypto market and Web3-related work, having participated in several well-known projects. Reflexer has also established strategic relationships with some important partners.

Community Participation

Reflexer has an active and loyal community that participates in project development and promotion through various channels. With a large number of fans on social media, they frequently hold various innovative events such as RAIversary, RAIflect, and RAInbow.

Security and Audit

Reflexer places a high priority on project security and has conducted multiple security audits. It has entrusted a well-known security auditing company to perform comprehensive and in-depth inspections and tests on its smart contracts and algorithms. A bounty program has been established to encourage the discovery and reporting of potential vulnerabilities. Measures such as multi-signature wallets, emergency pause mechanisms, and open-source code have been adopted to enhance transparency and credibility.

Sustainability and Business Model

Reflexer's business model lies in providing a stable decentralized currency platform that allows users to use RAI for various financial activities. Main sources of income:

1. Stability Fee: The dynamically adjusted interest paid by users when minting RAI.

2. FLX token: a finite supply token used for project governance and risk management voting.

This model provides users with unique and valuable currency options while creating stable and predictable income for the projects.

Competitive Advantage

Compared to other stablecoins, RAI has the following unique advantages:

1. Non-pegged: The price is completely determined by market supply and demand, making it more decentralized and autonomous.

2. Only accept ETH collateral: Simple and transparent, reducing complexity and risk.

3. Use PID controllers: dynamically adjust debt ratios and stability fees for more flexible adaptation.

4. No governance tokens and voting mechanisms: more resistant to censorship and manipulation.

These features make RAI a more decentralized, low-volatility, self-adjusting stablecoin option.

Capital Situation

Reflexer has received multiple rounds of financing support, with investors including well-known cryptocurrency investment institutions. This capital provides Reflexer with funding, resources, networks, and expertise.

Risk Assessment

Reflexer, as an innovative stablecoin project, faces the following main risks:

1. Technical risk: Smart contracts and algorithms may have unknown vulnerabilities.

2. Legal Risk: Non-pegged stablecoins may be subject to regulatory restrictions in certain regions.

3. Market Risk: Prices may still fluctuate and face competition from other stablecoins.

4. Community risk: There is a need to continuously attract users and developers, and maintain good communication and collaboration.