Reflexer is a decentralized platform where anyone can use their crypto collateral to issue reflex indexes like RAI. RAI, Reflexer's first reflex index, is an ETH backed, non pegged stable asset whose monetary policy is managed by an on-chain, autonomous controller. Reflex indexes are stable assets that are not pegged to anything, very similar to how the US Dollar is not pegged and it is still considered stable.
DeFi users can borrow RAI via Reflexer by depositing ETH as collateral into what’s called a Safe. Borrowed RAI is subject to an interest rate referred to as the borrow rate. Safes must maintain a minimum collateral ratio of 145%. If a Safe position fails to maintain this collateral ratio, the Safe will incur a liquidation penalty and the protocol will sell collateral to keepers at a discounted rate to cover the debt. Note: there’s also a minimum amount of RAI that must be generated by a Safe. This ensures that in the event of liquidation the Safe has enough collateral to cover its debt and the necessary gas costs and incentives for keepers necessary to liquidate the position.
How to use Reflexer?
Anyone can create RAI by depositing ETH in the protocol. You can interact with RAI using Reflexer's [native interface, https://app.reflexer.finance/].