on the crypto
Pantera and Lemniscap conducted a $ 4,14 million fundraiser for Reflexer Labs, with the goal of a new gentlecoin linked to the price of ether (quotation ETH) that maintains low volatility. The project stands out as something completely new aimed at seeking unprecedented price stability for cryptocurrencies.
A stable cryptocurrency
If a purely cryptographic token had a value that can easily be associated with real products (for example, a token that is constantly equal, say, at the price of three expressed at the bar), this would satisfy the "unit of account" test, that is, it would become something that could be used to evaluate the value of goods and, therefore, something more attractive to a wide range of investors.
The “unit of account” is one of the three aspects of the definition of traditional currency that the major cryptocurrencies fail to meet due to their volatility. This is what Reflexer is trying to create: a crypto-native unit of account.
The RAI token to separate DeFi from traditional currencies
The new round precedes the launch scheduled for the beginning of March of its new RAI token. RAI keeps track of ETH's long-term gains and losses without indulging its too large swings, exploiting the control theory of traditional engineering.
“You don't need to connect anything to be stable,” said founder Stefan Ionescu. “The most important thing to understand is that DeFi can and should be detached from the fate of the US dollar. The RAI token is a first step in that direction ".
Reflexer Labs ran a demo test of its system that lasted from October to January, called Proto RAI. The token was largely able to maintain a stable price relative to the ETH but with a small gain. The company compares its approach to central banks' use of the managed free float, where exchange rates seek general stability over time, despite occasional short-term turmoil.
A completely new space in the world of "stable" cryptocurrencies
US dollar-tracking stablecoins have been hugely successful; most developers agree that their success has been a key ingredient of decentralized finance (DeFi) as a killer feature of Ethereum.
“Many stable assets in use today are pegged to fiat currencies, a project with many limitations. These networks have limited economic incentives that can be used to influence the market price of their native stablecoins, ”Pantera Capital partner Paul Veradittakit said in a press release.
Roderik van der Graaf, founder of Lemniscap, said in the statement: "Reflexer is opening up a whole new design space in the world of 'stable' cryptocurrencies". However, the company still has a lot of work to do on its user interface and educational materials to be produced before the launch of RAI.
