RAI – one of the coolest experiments in crypto

The article is an explainer on RAI, a stablecoin whose redemption price floats instead of being pegged at 1 USD, with the redemption rate, rather than a balance change, adjusting to supply and demand. Its author notes that the design differs from DAI, which applies interest to balances. The protocol computes the redemption rate automatically by tracking the gap between market price and redemption price, using a PI controller that replaced an earlier P controller. The article adds that a 2025 note says Reflexer Labs has wound down active development, though the RAI contracts remain immutable and operational on-chain.