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 ($0.85–$1.20) 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. Initial branches typically include WETH, wstETH, rETH, and WBTC. The current list and per-branch parameters live on Deployed addresses.

Can I lose my collateral to redemption?

If your trove is unshielded 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, shield your trove. See The shield.

What does shielding actually do?

Shielded troves are never redeemed against in normal operation. The only path that touches a shielded trove is branch shutdown, on a special discount-based redemption schedule. In exchange, shielded troves pay a surcharge on top of the branch rate; that surcharge funds a matching discount on the unshielded book. The bigger the branch's shielded share, the bigger both sides of the adjustment. See The shield and the Interest model.

What's the minimum trove size?

MIN_NET_DEBT = 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 FeeRouter and the singleton GlobalFeeRouter 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 Shutdown machinery.

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. Some routing/parameter contracts are owner-controlled within hard bounds defined by the immutable contracts. See Risks for the full governance surface.

Where do I report a bug?

Through the bug bounty program. See Audits & security.