FAQ
Is RD pegged to $1?
Yes, RD targets $1. The protocol maintains that target through redemption arbitrage and adaptive interest rates. In extreme conditions it can also adjust an internal price (par, normally $1) to make the arbitrage more attractive and bring market RD back. See How it stays stable.
What is "par"?
Par is the protocol's internal price for RD. Almost always exactly $1.00. The controller can adjust par within a bounded range ($0.75–$1.30) under sustained stress to give arbitrageurs a bigger spread, which helps drive market RD back to $1. Par is a backstop mechanism, most users will never see it move. See How RD stays near $1.
What collateral can I borrow against?
RAI Dollar is multi-collateral, with 8 branches at launch: WETH, wstETH, WBTC, rETH, weETH, tBTC, sUSDS, and PAXG. The current list and per-branch parameters live on Collaterals and Deployed addresses.
Can I lose my collateral to redemption?
If your trove does not have Redemption Shield and has one of the lowest collateral ratios in your branch, yes, redeemers can claim part of your collateral in exchange for repaying part of your debt at par. You're not losing dollar value (you get debt cancelled equal in value to the collateral taken), but you do end up with less collateral and less debt. If you don't want that exposure, enable Redemption Shield. See Redemption shield.
What does Redemption Shield actually do?
Troves with Redemption Shield enabled are never redeemed against in normal operation. The only path that touches a trove with Redemption Shield enabled is branch shutdown, on a special discount-based redemption schedule. In exchange, troves with Redemption Shield enabled pay a surcharge on top of the branch rate; that surcharge funds a matching discount on the base book. The bigger the branch's Redemption Shield share, the bigger both sides of the adjustment. See Redemption shield and the Interest model.
What's the minimum trove size?
The minimum net debt is 1,800 RD. On top of that the protocol reserves another 200 RD as gas compensation for the eventual liquidator, so the minimum total debt of an open trove is 2,000 RD.
What happens during the bootstrap period?
For 14 days after deployment, redemptions are disabled. Borrowing, repaying, depositing into the Stability Pool, and liquidations all work normally. The bootstrap window lets the controller, the oracle, and the depositor base settle before redemption pressure starts.
Where do protocol fees go?
Borrow interest is routed through a per-branch fee router and the singleton global fee router to FEE stakers (in RD), the Stability Pool incentive stream, and LP staking. Redemption fees are not routed through the staking pipeline; they are retained by the redeemed trove as residual collateral. See Fees.
What happens if a branch is shut down?
The branch stops issuing new debt and stops accruing Stability Pool emissions. Redemptions and liquidations still work, on a special pricing schedule that discounts collateral over time to clear the branch. Other branches keep running normally. See Collateral shutdown.
What if the whole system shuts down?
System-wide shutdown is the simultaneous shutdown of all branches. All collateral can still be redeemed at the shutdown pricing schedule. There is no admin path that can confiscate or freeze user assets.
Is the protocol upgradeable?
No. The core contracts (Aggregator, branches, RateParControl, RDToken, FEEToken) are immutable, and no protocol parameters can be changed after launch — there are no admin keys, no upgrade path, and no governance able to alter rates, collateral parameters, bounds, or any other setting. What deploys is what runs, permanently. See Risks for the trade-offs of that immutability.
What is RDToken's address on Ethereum?
TBD.