To create more stability in our seed price, particularly during bear markets, it has been proposed to add a stablecoin to our Balancer pool. This would reduce our exposure to the volatility of Eth, so we can be confident in our seed payouts without worrying about overarching market forces. In addition, we have worked with Reflexer Labs, who are willing to incentivize our pool, provided we use RAI as the stable coin.
This proposal would change our pool from 70% Eth, 30% Seed; to 60% Eth, 20% Seed, and 20% RAI.
Why RAI?
RAI was selected as it is a fully decentralized stablecoin that isn’t pegged to any fiat currency. Unlike other stables, it is backed exclusively by Eth. It is also not exposed to the regulatory risk that USD pegged coins are exposed to.
The Reflexer site can be found here: https://reflexer.finance/
You can also hop into their Discord here: (They’re super friendly!) https://discord.gg/XXBzQbNN
Don’t forget, they’ve also agreed to incentivize our pool for the first few months!
I’ll leave this post up for a few days for discussion, then submit a vote on Discord. Feel free to discuss here or there!
I support & vibeb this motion also. Its a great signal of the value Patrons provide as we continue to build for Public Good. Being aligned with Reflexer is ideal, fully decentralised stablecoins is de way! Also Stefan is kew
Thank you so much for the good vibes! As @Bacon mentioned, we’d be stoked to work together and boost the liquidity and stability of your Balancer pool
The incentives are FLX awarded monthly for the first few months. FLX is the (Un)governance token for Reflexer and you can learn more about it on their site! Thompson is also scheduling them to come and give us a talk this week to help everyone understand and further bridge our communities!
Also, I’ll post the vote on this to discord tomorrow evening.
This is largely speculative as those laws are in a constant state of flux and interpretation. RAI isn’t pegged to USD though, so it shouldn’t be affected by any of the pending legal regulations. You can also ask about this during the AMA, but we’ve been discussing it in their discord and there’s not much more info on the matter.
Difficult to make this assertion then as regulation will be to approaching all stablecoins with regs as well. But i guess i do see a possible break. And a possibility of harder regulation depending. We shall see.
Vote is up on Discord! We also have the AMA with Reflexer later today!
There has been an issue raised concerning where the influx of RAI would come from to push our pool to 20% RAI without selling off seeds to do it. This would currently require around $100K worth of RAI, which obviously would be difficult to muster. I’ve checked with the Balancer team though, and we don’t have to do it all at once, we can do it in steps. I think 10% would be pretty attainable, and so we could start there. I’m also looking into what options we would have if we migrated to Balancer V2.
