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What is RAI Dollar?

RAI Dollar is an immutable lending protocol running on Ethereum. You lock up crypto collateral (ETH, wstETH, rETH, WBTC, and other supported assets) and mint RD, a USD-denominated stablecoin. You can repay and withdraw your collateral at any time.

RD targets $1. The protocol has built-in mechanisms, redemption arbitrage and adaptive interest rates, to keep market price close to $1. See How it stays stable for the full picture.

What you can do with it​

  • Borrow: open a "trove" against your collateral, mint RD, hold or use it however you like, repay later. There is no fixed-term loan and no fixed schedule, your only obligation is to keep your collateral ratio above the branch's minimum (typically 110%).
  • Hold or trade RD: standard ERC-20. Acquire it by borrowing, by buying on a DEX, or by being paid in it.
  • Redeem RD for collateral: any holder can exchange RD for collateral at par, less a small fee. This is the mechanism that puts a floor under the price.
  • Earn: deposit RD into a Stability Pool to absorb liquidations (and earn collateral + FEE rewards), stake FEE or FLX, or LP into supported pools.

What makes the design different​

  • Multi-collateral by construction. Each supported collateral has its own "branch" with its own trove book, Stability Pool, and oracle. A top-level Aggregator coordinates them.
  • Adaptive interest rates. A controller raises or lowers the system-wide borrow rate in response to market pressure, before any stress reaches the user. See How it stays stable.
  • Optional shielding. Borrowers can pay a small premium on their borrow rate to guarantee their trove's collateral is not redeemed (except possibly during branch shutdown). See The shield.
  • Cross-branch redemptions. A single redemption tx splits across all active branches by debt weight, so no branch can hide from arbitrage. See Redemption.

Two tokens​

  • RD: the stablecoin. Minted only by the protocol when collateral is locked; burned when debt is repaid or redeemed.
  • FEE: the protocol's value-capture token. Holders stake it to earn a share of borrow interest, paid in RD. See FEE staking.

A third token, FLX, exists as a separate distribution; FLX stakers earn FEE on a one-year linear stream. See FLX staking.

Where to go next​