RAI Dollar

What happens when
increasing rates can’t
fix the peg?

After seven days of sustained error, PAR takes the baton.
RD / USD · the handoff
Calm
BACKING SHOCK PAR TAKES OVER $1.000
TWAP PAR Floor
Market TWAP
$1.000
on peg
System rate
2.0%
the first response
PAR
$1.000
waiting offstage
Active instrument RATE holds the baton
RATE PAR
Sustained underpeg · 7 days waiting for persistent error
01 · Calm
Rate handles everyday peg pressure.
PAR stays at $1 while the faster, lighter instrument does the work.

A collateral impairment pushes RD below one dollar. Increasing rates fail to restore the peg. After seven days of sustained error, the controller hands the baton to PAR. PAR raises redemption value and the market follows the rising redemption floor.