Key Points:
- One of the main challenges facing RAI is that it is difficult to find ETH holders who are willing to act as LPs when the interest rate is higher than the current level of about -5% to -10%.
- Vitalik Buterinsaid that it is strongly inclined to try to find a way to use pledged ETH as collateral to avoid the formation of a network effect around a single dominant liquid pledged derivatives, and RAI can be part of the solution.
Vitalik Buterin, the founder of Ethereum, recently released a proposal titled “Can oracles double as co-stakers? How RAI-like systems might safely support staked ETH”.
The article stated that one of the main challenges facing RAI is that it is difficult to find ETH holders who are willing to act as LPs, especially when the interest rate is higher than the current level of about -5% to -10%. A major reason behind this issue is that currently, RAI CDPs compete with staking as a source of yield.
Some are exploring multi-collateral RAI as a solution to this problem. V God’s view on this is: DAI has already filled the niche market as an arbitrary (including “real world asset”) multi-collateral algorithm stable currency, so it makes no sense for the RAI ecosystem to compete in this field.
Therefore, it believes that only when Multi-collateral refers to an extremely narrow form of multi-collateral (ETH and pledged ETH), then making RAI (or forking) multi-collateral makes sense.
V God said that it is strongly inclined to try to find a way to use pledged ETH as collateral to avoid the formation of a network effect around a single dominant liquid pledged derivatives, and RAI can be part of the solution.
To this end, Vitalik proposed three solutions:
- Oracles as stakers
- Oracles as 2-of-2 stakers
- Semi-trusted oracles for graded security
These three solutions have their own advantages and disadvantages in terms of ease of implementation, prevention of bad oracles, protection of bad CDP holders, and willingness to operate oracles. However, V God said that option 1 seems to be easier to implement in the short term and will be an interesting addition to the space of earning other staking income at the same time.
Scheme 2 and Scheme 3 seem to be less trust-free and longer-lasting, with less trust in oracle machines and better maintenance of pledge decentralization. However, in the long run, Vitalik is more inclined to choose the latter two Programs.
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