Reflexer: The Disruptive Web3 Currency System of the Unpegged Stablecoin RAI

Reflexer is a project dedicated to creating a stable and decentralized currency platform that allows users to mint RAI—an unpegged stablecoin—using ETH. The goal of RAI is to become a decentralized, low-volatility, and self-regulating currency that is not influenced by external factors. Reflexer's vision is to build a new monetary system for Web3, enabling users to freely choose the currency they need, rather than being forced to use traditional fiat currency or stablecoins pegged to it.

Core Technology

Reflexer's core technology is based on MakerDAO's smart contract system, but it has several notable features:

1. Higher decentralization: No governance tokens and voting mechanisms, enhancing censorship resistance.

2. PID controller algorithm: dynamically adjust the debt ratio between RAI and ETH to maintain the RAI price within a reasonable range.

3. Dynamic stability fee: Automatically adjusted based on market conditions and PID controller output, rather than a fixed rate.

These innovations make Reflexer one of the most advanced stablecoin solutions in the current cryptocurrency space, with RAI being its representative application.

Team and Cooperation

The Reflexer team is composed of experienced developers, designers, researchers, and community managers who have rich work backgrounds in the cryptocurrency market and Web3 field, having participated in several well-known projects. The project has also established strategic partnerships with some important industry players.

Community Participation

Reflexer has an active and loyal community that participates in project development and promotion through various channels. Various innovative activities are frequently held on social media, such as RAIversary (launch anniversary celebration), RAIflect (user story sharing), and RAInbow (display of related artworks), etc.

Security and Audit

Reflexer places a high priority on project security and has undergone multiple security audits. Several well-known security firms have conducted comprehensive and in-depth checks and tests on its smart contracts and algorithms. The project has also established a Bug Bounty program to encourage security researchers to identify and report potential vulnerabilities. In addition, Reflexer employs measures such as multi-signature wallets, emergency pause mechanisms, and open-source code to enhance project transparency and credibility.

Sustainability and Business Model

Reflexer's business model revolves around providing a stable and decentralized currency platform that allows users to engage in various financial activities using RAI. The main sources of revenue include:

1. Stability fee: The dynamic interest paid by users when minting RAI.
2. FLX token: A limited supply token used for project governance and risk management.

This model provides users with unique currency options while creating a stable and predictable source of income for the project.

Competitive Advantage

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

1. Non-pegged: Prices are entirely determined by market supply and demand, which is more decentralized and autonomous.
2. Single collateral: Only ETH is accepted, simplifying operations and increasing transparency.
3. Advanced Algorithm: Use PID controllers to dynamically adjust parameters, enhancing flexibility and adaptability.
4. Highly decentralized: No governance tokens and voting mechanisms, enhancing resistance to censorship and manipulation.

These characteristics make RAI superior to other stablecoin projects in terms of decentralization, low volatility, and self-regulation.

Capital Situation

Reflexer has received multiple rounds of funding support during its development. It completed its seed round in September 2020, and completed Series A and Series B financing in March and September 2021, respectively. The investors include several well-known institutions in the cryptocurrency field, providing the project with funding, resources, networks, and expertise.

Risk Assessment

Despite Reflexer being innovative, it still faces some key risks:

1. Technical risk: Smart contracts and algorithms may have unknown vulnerabilities.
2. Legal risks: Certain countries or regions may restrict or prohibit non-pegged stablecoins.
3. Market Risk: Prices may fluctuate due to supply and demand, facing competition from other stablecoin projects.
4. Community Risk: It is necessary to continuously attract and retain users and developers, and maintain good communication to resolve potential disagreements.