What Is Reflexer?
Reflexer is a novel protocol that facilitates the creation of a unique, non-pegged stablecoin called RAI. Unlike typical decentralized stablecoins tied to the US Dollar or other fiat currencies, RAI’s value floats and adjusts according to market dynamics.
Background
Ameen Soleimani and Stefan Ionescu founded Reflexer Finance in 2021.
How It Works
Reflexer is a platform that enables users to leverage their ETH holdings to mint RAI. The RAI stablecoin is governed by market forces rather than pegged to a specific value.
The protocol aims for equilibrium, where RAI’s market price matches its redemption price. When these two values diverge, the protocol implements a redemption rate adjustment to counteract market movements and motivate participants to return RAI’s market price to its redemption value. Reflexer’s governance token, FLX, benefits from the platform’s value creation via stability fees and FLX buybacks.
Key Takeaways
- Reflexer is a unique protocol that enables the creation of a non-pegged stablecoin, RAI, which isn’t tied to any fiat currency.
- Unlike typical decentralized stablecoins, RAI’s value floats and adjusts according to market dynamics.
- Reflexer was founded by Ameen Soleimani and Stefan Ionescu in 2021.
- The Reflexer platform allows users to leverage their ETH holdings to mint RAI.
- The protocol strives for equilibrium between RAI’s market and redemption prices, adjusting the redemption rate to motivate participants to maintain this balance.
