Reflexer will be integrating the RAI stablecoin with Injective, making Injective the first decentralized derivatives exchange to support RAI.
Reflexer is a platform where anyone can use their crypto collateral to issue reflex indexes. Reflex indexes are stable assets that are not pegged to anything, very similar to how the US Dollar is not pegged and it is still considered stable. The Reflexer team is backed by the likes of Pantera and Paradigm.
RAI is the first stablecoin on Reflexer and operates in a similar fashion to DAI. However, unlike DAI, Reflexer is entirely administered by algorithms rather than manual forms of governance. In particular, RAI is a non-pegged, stable asset that is solely collateralized by ETH. It is designed to dampen ETH’s price moves and thus provide a more “stable” alternative to Ether as DeFi collateral.
Injective's collaboration with RAI will occur in two separate phases.
The first step is in making RAI available on Injective through the use of Chainlink based price feeds. Since Injective and Reflexer both work with Chainlink, Injective can use the RAI price feed to enable futures trading through Injective. The graphic below will illustrate how Reflexer works with Chainlink today.
The second step will include a direct integration with RAI, via which RAI can be bridged over to the Injective Chain using the Peggy bridge. Since RAI is an ERC20 token it can seamlessly be bridged over onto Injective on the mainnet.
“Our collaboration with Injective would mark the first ever instance of a stable asset with a funding rate being integrated with a derivative platform. We’re thrilled to be working together on such an innovative product!” said Stefan Ionescu, Co-founder of Reflexer.
RAI also helps to diversify the stablecoin market available on Injective.
“The team at Reflexer and Injective share a common goal of creating entirely community governed decentralized finance markets. We are excited to take this next step forward in launching new derivative products that utilize RAI,” said Eric Chen, Injective Labs CEO.
The Injective community has shown great enthusiasm for working with Reflexer on the initial deployment of Rai on the derivatives exchange.
This is a significant milestone for Injective. Bolstering the collaboration with stable assets is just one example of the limitless capabilities of the protocol.
Reflexer is a platform where anyone can use their crypto collateral to issue non-pegged stable assets. RAI is the very first asset of this kind: it is only backed by ETH and has a native funding rate that is calculated by an on-chain PI controller. In short, RAI can be described as a dollar denominated stable asset with a moving peg.
Injective is a lightning fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.
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