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Reflexer is a platform, where anyone can use their ETH collateral to mint RAI stablecoin. Unlike DAI and other stablecoins pegged to the U.S. dollar, RAI is only backed by ETH, meaning it is unpegged. People can use RAI as an hedge against volatility, get leverage on their ETH collateral, get yield through decentralized finance (DeFi) applications, or take advantage of it's floating target price (for example, through arbitrage).


Reflexer was founded in 2020 by Stefan Ionescu and Ameen Soleimani.

The idea behind Reflexer and RAI came from the DAI Purple Paper, which was written by a couple of MakerDAO team members, that hints to the fact that DAI was not supposed to be pegged to anything. Rather, it was meant to have a floating target price (aka moving peg) that changes according to what the market price of DAI is on secondary markets.

RAI was launched on mainnet on February 17th, 2021 and drew inspiration from the early days of stablecoins to offer crypto-native stability completely detached from traditional finance and the U.S. dollar.

RAI token

RAI is an ETH backed, non-pegged stable asset, whose monetary policy is managed by an on-chain, autonomous controller.

How does RAI remain stable?

The further the market price of RAI moves from the target price, the more powerful the interest rate, and the greater the incentive for arbitrageurs to return RAI to equilibrium.

RAI usecases

  • Supercharging other protocols as a stable asset with native interest rate
  • As collateral for dapps
  • Unique money markets
  • Stacked funding rates
  • Options
  • Pegged coins or synthetic assets
  • Yield aggregator
  • Sophisticated arbitrageurs
  • Portfolio management strategies

FLX token

The FLX token has two main functions inside the RAI protocol:

  • Backstop mechanism: FLX stakers are the first line of defense in case the RAI protocol goes underwater. The second line of defense is with debt auctions that mint new FLX and auction it in exchange for RAI
  • Ungovernance: once governance minimization is finalized, FLX holders will be able to remove control from any remaining components in RAI or, if needed, continue to manage components that may be challenging to ungovern (such as oracles or any other component interacting with other protocols)


GEB is the framework used to create stablecoins such as RAI. It is a modified fork of MakerDAO MCD, although it has several new features such as the possibility to add insurance for user positions, the option to add a lender of first resort, an on-chain treasury that incentivizes keepers to update core contracts, an on-chain PID, fixed discount auctions and other.