ITSA lists RAI Stablecoin in Tokenbase

ETH total deposited collateral vs. time
Figure 1: Eth collateral locked over time (source:https://dune.com)

How does RAI work?

  • Redemption price: The internal value of RAI in the system. In other words, the price to mint and repay RAI debt. In equilibrium, the redemption price should be equal to the market price.
  • Redemption rate: the rate of change of the redemption price. It can be measured as APR (annual percentage rate). The redemption rate can be positive or negative.
RAI market vs. redemption price — all time chart
Figure 2: Currently RAI price fluctuates +/- 2% of the redemption price. (source: https://dune.com)

Secondary token (FLX)

  1. FLX owners are the first line of defense in case RAI enters a death spiral. FLX is the lender of last resort in the system. Similar to the Maker protocol, the RAI system will have a surplus and debt auctions. Debt auctions will autonomously mint and auction new FLX to cover the loss.
  2. Ungoverning the RAI system: It sounds unintuitive, but the idea behind the governance token is to reduce the governance around the protocol and further decentralize all components of the system.

Challenges and risks

Weekly RAI transaction volume is dropping (chart)
Figure 3: Weekly RAI transaction volume (source:https://dune.com/)
CDPs created by day is dropping (chart)
Figure 4: CDPs created per day (source:https://dune.com/HggqX/Reflexer-RAI)

The classification of RAI according to the ITC:

RAI stablecoin ITSA Tokenbase entry
Figure 5: The RAI Tokenbase entry (Source: https://itin.itsa.global/PZT580KV3 )

FLX token:

FLX governance token ITSA Tokenbase entry
Figure 6: Tokenbase entry of FLX token (Source:https://itin.itsa.global/N0T6Z9PR5 )

The International Token Standardization Association (ITSA) e.V.

  • The International Token Identification Number (ITIN) is a 9-digit alphanumeric technical identifier for both fungible and non-fungible DLT-based tokens. Thanks to its underlying Uniform Token Locator (UTL), ITIN presents a unique and fork-resilient identification of tokens. The ITIN also allows for the connecting and matching of other media and data to the token, such as legal contracts or price data, and increases safety and operational transparency when handling these tokens.
  • The International Token Classification (ITC) is a multi-dimensional, expandable framework for the classification of tokens. Current dimensions include technological, economic, legal, and regulatory dimensions with multiple sub-dimensions. By mid-2021, there will be at least two new dimensions added, including a tax dimension. So far, our classification framework has been applied to 99% of the token market according to the market capitalization of classified tokens.
  • ITSA’s Tokenbase currently holds data on over 4000 tokens. Tokenbase is a holistic database for the analysis of tokens and combines our identification and classification data with market and blockchain data from external providers. Third-party data of several partners is already integrated, and API access is also in development.

Remarks

RAI article cover photo

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The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.

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International Token Standardization Association

International Token Standardization Association

The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.

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