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.
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:
You can also hop into their Discord here: (They’re super friendly!)
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!