Let's start a RAI-ot!
summary
Launched Feb 2020, RAI is an ETH-backed, non‑USD stable-ish coin that uses an on-chain PI controller to auto‑adjust redemption rates, enforces a 135% liquidation threshold, and deliberately keeps governance minimal as ungovernance. The system runs ETH-only collateral and a fixed/increasing discount auction liquidator with FLX as backstop; it migrates control to a DAO and supports global settlement via a proto‑RAI. Controller stickiness causes months-long market vs redemption spreads, and protocol actors (e.g. a noted short) have profited ~\$75k during negative‑rate episodes.
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chapters (9)
- 0:00Introduction to Rai
- 1:42Lessons from hyperinflation
- 5:17Failures of pegged coins
- 7:24How the Rai system works
- 10:26The PI controller explained
- 12:52Minimalist governance
- 13:55The future of finance
- 16:13The money god ecosystem
- 17:31Audience Q&A
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