What is Reflexer?
Reflexer is a protocol that works for the purpose of creating stable assets (such as stablecoins) without being dependent on fiat currencies, and minimizing project governance decisions.
The RAI token issued by Reflexer serves the purpose of creating stable assets that are collateralized solely by ETH, and with minimal governance elements.
To make it easy to understand, Reflexer is like a version of MakerDAO, with the feature of collateralizing assets to mint stable assets. However, the only asset that Reflexer allows as collateral, is ETH.
What's special about Reflexer's system (FLX & RAI)?
As mentioned above, the special feature of Reflexer is a very special system administration mechanism. If other projects find ways to give control back to the community, Reflexer has deployed a roadmap to transfer that control to “nobody”.
Specifically, that roadmap includes 3 timelines as follows:
Step 1: It is expected that on April 17, 2022, the mechanism of liquidation, tax calculation and auction and a few other important mechanisms of the protocol will be optimized for governance. This means that from this point on, only a few mechanisms can be adjusted, not including the three mentioned above.
Step 2: It is estimated that by August 17, 2022, all core smart contracts in the protocol (excluding oracle contracts, position protection contracts, and a few others depending on the situation) model at that time), Reflexer's protocol will be administratively optimized. This means that from this point on, only a few mechanisms can be adjusted, and all governance is vested in the community.
Step 3: At this point, the community has completely taken control. The community will decide, which mechanism remains, when and how, to optimize governance.
The goal of Reflexer and the community is to remove as much control over the protocol as possible, because as mentioned at the beginning of the article, project governance through tokens is very harmful to the sustainable development of the project. Therefore, the project decided to launch a token to protect the RAI system, and allow the community to remove maximum control through the FLX token - the project's non-governance token.
The birth of the FLX non-governance token
The RAI system has an incentive mechanism to protect the decentralized system through the project's FLX non-governance token. The birth of the non-governance token came from the desire to build a protocol that could eliminate as much human control as possible, thereby making the protocol more scalable.
The FLX token has two main functions:
-Lender of last resort: Like the model of the original MakerDAO protocol, the RAI system will have a surplus and debt auction mechanism. In case the debt occurs when it is mass liquidated at a price lower than the borrowed value, then, new FLX tokens will be minted and auctioned to settle bad debt.
-RAI non-governance system: Once the main governance mechanisms have been removed from the system, the community will continue to decide which mechanism can be removed, when and by what means. Which is best for the system? The FLX token will be non-governance, by allowing the community to make their own decisions to remove their control of the project.
Reflexer is counting on FLX's third use: Lenders benefit first. This means that FLX tokens can be staked for rewards but can be deducted, if mass liquidation and bad debt occur.
Read full Article: CLICK HERE