A new money god: Introducing TAI, a multi-collateral version of RAI

Introducing TAI, a Multi-Collateral Version of RAI

First, why we like RAI

RAI is the soundest stable coin in the industry today. We care for decentralization, so the ungovernance / ETH only collateral combo is very appealing to us.

We also have been fascinated by the autonomous rate setting and how well it worked since the system inception.

The recent sanctions on smart contracts and actions of centralized entities that followed proved these were the right choices. Most of defi dapps lost touch with crypto’s ultimate mission: To provide means of transacting value in uncensorable and anti-fragile ways.

TAI: Multi-Collateral RAI

The current consensus in the crypto industry (since the sanctions) is that RAI is one of the best stablecoins out there. It is also common knowledge that ETH only systems can only scale to a point.

Although we agree that ETH is the single best collateral for a stablecoin, compromises need to be made for a system that can scale further than RAI.

In our opinion this can be achieved by having a multi-collateral version of the system and only onboard of collaterals that are sufficiently decentralized. The natural first choices are ETH liquid staking derivatives, as well as other decentralized ETH derivatives. And of course, RAI!

Another compromise for a multi-collateral system is more governance, so other decentralized currencies can be included in the system down the road.

Differences from RAI

Multiple collaterals

TAI can be generated from many different crypto collaterals, not just ETH. Each collateral will have distinct borrow rates and collateralization ratios and be supported by their own oracle. Different versions of each collateral(ETH_A, ETH_B, etc) will be supported.

Less strict ungovernance

Since the system will have the ability to add new collaterals, there will somewhat more governance than RAI. In light of this, we can create an add-only collateral blacklist to prevent certain collaterals from being supported. Other aspects of the system can still be ungoverned in the same fashion RAI was.

Other Differences from RAI

TAI will not launch with staking, although that can be included after the initial deployment. We are also continuing to research the best parameters for the the system.

Similarities with RAI

TAI will use the same governance token strategy as RAI, buyback and burn. Also, the same market price feedback control system will be used.

Token allocation

Team: 20%
Treasury: 20%
Incentive Program: 52%
Reflexer DAO: 8%
VCs: 0%

Potential partnership with Reflexer DAO

There will be startup and infrastructure costs that Reflexer DAO can potentially help with grants. In exchange, TAI could offer incentives to the Reflexer DAO.

Some possible costs are:

  • Bug bounties
  • Audits
  • Hosting

Details of Testnet Launch

We have deployed an instance of the system to the Fantom testnet, and the contract addresses are listed below.

Fantom is being used just as a testnet and not the final destination of TAI.

Contracts

GEB_MULTISIG: '0x336281cB29D22914242edFC4467E1f458FB378c7',
SURPLUS_AUCTION_RECEIVER: '0x0000000000000000000000000000000000000001',
GEB_PAUSE_AUTHORITY: '0x98021387676fc04DB5ae803e700BFC87B8b2f77b',
GEB_PAUSE: '0xAebF433b4886705F42ba6A75E315016199548580',
GEB_PAUSE_PROXY: '0xfA1b411B863BDD734e2F83b59055dC395f43F580',
GEB_PROT: '0x6a358ee7A25a6bd0a9Ce0521353c577076F90845',
PROTOCOL_TOKEN_AUTHORITY: '0xdB1e7BA6fD20DE23efD2Cf258b59DdAAe8096277',
GEB_SAFE_ENGINE: '0x4BE63C56f4317B35409e5B2a3d1B7A92b8cA67B5',
GEB_ORACLE_RELAYER: '0x033076b3d8FF49F399A0bB38cD5d14A4BD748838',
GEB_COIN: '0xc7773CD41D9093A3c1B70dFCA013f1657aC9193a',
GEB_COIN_JOIN: '0x222B6A39D5c0d78104b85f3e089DC96c9A15c8B0',
SYSTEM_COIN_ORACLE: '0x3f4d84FCAcBab807ac46BbC6E22ddDE366AE9120',
GEB_TAX_COLLECTOR: '0xB4cDA799D8BDdaA6D37eC1D36E7934C665C7A0aE',
GEB_SURPLUS_AUCTION_HOUSE: '0xDAD5a164A3049A443eD1530B70390Ed7663AaD1f',
GEB_DEBT_AUCTION_HOUSE: '0x2475B9fAAcF7b83457c62023Fe36a53458cEdBC5',
GEB_ACCOUNTING_ENGINE: '0x57fd4825620cdF37a94cAd24013c5103088969F7',
GEB_STABILITY_FEE_TREASURY: '0x1380Ba5AF0799da9eD4f1072929bdC55Cb899BD5',
GEB_LIQUIDATION_ENGINE: '0x8f9374e559272F7f8CB9AA5E6E207de02eD8A03B',
GEB_GLOBAL_SETTLEMENT: '0x740418969eC7B1e89Ca05Cebc72b4C4391920f4a',
GEB_ESM_TOKEN_BURNER: '0xFbc54a3AD2Ef5DbCF340C81616F643f8b96C6742',
GEB_ESM_THRESHOLD_SETTER: '0x4c64D96ca5Ed86d878DD574D034A396ffFF592a7',
GEB_ESM: '0xBf591dA19f6c5B052751D574294d1851960D503A',
GEB_RRFM_CALCULATOR: '0x29e088Fbb205AfeFF3eF965EC97281A317a64c0c',
GEB_RRFM_SETTER_RELAYER: '0x2e98CA49cfa1Fb8dE6f76D64CCb2Fbd7E7Ab915E',
GEB_RRFM_SETTER: '0x16e33c991900B3C9374b652e07116f2b26914d49',
GEB_GOV_ACTIONS: '0x383F54aDf5A35F7988e9D5CD8B6738e86E9A0a34',
PROXY_ACTIONS: '0x333c0a395AD2c065cF7b8fb814EF4E7B4F9D2229',
SAFE_MANAGER: '0xC44B60E1517D56c8BE6C72AAFE0412D7d3c81B14',
PROXY_FACTORY: '0xA359D4C2D45495B6fbb2495e67ff2FF5D6fe1eF7',
PROXY_REGISTRY: '0x72C0C5e08f1B222475CF79bb6a7e650acf629927',
DEBT_POPPER_REWARDS: '0x7b8b250273B0C1407450E9F3333F9fDE01088CA7',
COLLATERAL_ORACLE_ETH: '0x11A5396515c7b7FaD8152b42f099335F98cCA82c',
FEED_SECURITY_MODULE_ETH: '0xb7278a61aa25c888815afc32ad3cc52ff24fe575',
ETH: '0xD832462B1bE2b0c600CC87b734E630408736E875',
COLLATERAL_ORACLE_WSTETH: '0x52e8ED5e47544b9Cf92f744EaAe0B1438B91Bb70',
FEED_SECURITY_MODULE_WSTETH: '0xdeeb424b6e7F82B9bD2a3Ee7d5bc4e9a79CCFc8B',
WSTETH: '0xf07E2BD112D0Ac4b21EF403AC937943b1077F5f4',
COLLATERAL_ORACLE_RETH: '0x2A90E4e1610d6e020E52abfbe1eD0961fB310BAf',
FEED_SECURITY_MODULE_RETH: '0x5f1eAEFDfB1296FaffaB3dc6c1F63c759Ad2a4EC',
RETH: '0xEabe9e688689cB53De9bEcc2D27cd6bC517c3935',
COLLATERAL_ORACLE_RAI: '0x0Dbce9D1E875772cf370f14f10Cd22f71B6B6F95',
FEED_SECURITY_MODULE_RAI: '0xC0277148e804B180F340e02d87E106ebDf5F53D2',
RAI: '0x80F975B4c9f2bcEBe86c80819B37877D2Be26B9B',
PAUSE_EXECUTOR: '0x1289b5313aC14FC09736687Fcb9ED9405B345F23',
GEB_JOIN_ETH_A: '0x15D0EFa53aD10011a7C53068eA78DF464d1aaaCE',
COLLATERAL_AUCTION_HOUSE_ETH_A: '0xDd8902F8413f6D794bDAfda85Bd40DD32Db4a1AE',
GEB_JOIN_ETH_B: '0x59b86cf4d8B566602a687Bd9A2979792e73316d9',
COLLATERAL_AUCTION_HOUSE_ETH_B: '0x20eBEE002d53dbC02eaD1C55Bd7E31FF67615Ce0',
GEB_JOIN_ETH_C: '0x7C18EA94043e9759394a2cdBC7D9BceBd5B2df1d',
COLLATERAL_AUCTION_HOUSE_ETH_C: '0x9043F8858c67f19dCaf3b7298a60DdFFE93F442B',
GEB_JOIN_WSTETH_A: '0xA700528a2B9Bd3126c96378b76f2c99f5F0e0F76',
COLLATERAL_AUCTION_HOUSE_WSTETH_A:'0x7ad1630b2E9F0e5401f220A33B473C7E5551dd3e',
GEB_JOIN_WSTETH_B: '0xE278796A143a9C8d8628B7dd65D3Af9BA25edF87',
COLLATERAL_AUCTION_HOUSE_WSTETH_B:'0xcB37C34c8Cd1C5Ee225Aa9807B7D83e70Ae736Bf',
GEB_JOIN_RETH_A: '0x9B946889657e8f2D943A3841282fBf5751241E85',
COLLATERAL_AUCTION_HOUSE_RETH_A: '0x00c0402BDE9E2c2962cA7586a5DABb38fAd515a8',
GEB_JOIN_RETH_B: '0xCd40ae7648E53B92e338CCaAF78734397D2Fe2A4',
COLLATERAL_AUCTION_HOUSE_RETH_B: '0xF5A39660A894698074593A5B1fBd33697dCa4091',
GEB_JOIN_RAI_A: '0x5e988D9618a4d2681D899CC2fe8cdDC70EC92089',
COLLATERAL_AUCTION_HOUSE_RAI_A: '0xF0E812fd6906362f945196712318D42b9Ba93197',

Interacting with the testnet

There is no UI for the contracts yet, use our forked version of geb-console to interact with it.

Note: Many of the existing Geb.js functions have been upgraded to accept a collateralType parameter, although their names have been kept the same for now. For example, openLockETHAndGenerateDebt supports all collateral types, not just ETH.

1) Install MCGeb.js

npm i -g @money-god/geb-console 

2) Launch MCGeb.js and specify ‘fantom’ to connect to the fantom testnet

geb-console fantom

3) MCGeb.js Example: Build Proxy, open safe, lock 30 ETH(FTM on this testnet) and mint 5000 TAI

// in geb-console
const my_address = '<YOUR ADDRESS>'

// First build a proxy. Only need to do this once!
tx = geb.contracts.proxyRegistry.build()
metamask(tx)

//  get proxy
p = await geb.getProxyAction(my_address)

// Lock 30 ETH(FTM) into ETH_C and mint 5000 TAI
tx = p.openLockETHAndGenerateDebt(wad(30), ETH_C, wad(5000))

metamask(tx)

Faucets for all collaterals in the system:

To be deployed (test with ETH(FTM) collateral for now).

We ask for community feedback on the settings of the system, the target network, and partnership terms. We feel this is a natural next step for the Money God League, expanding its reach, and are excited to become a part of this experiment.

6 Likes

The test system has been launched with the same collateral parameters as MakerDAO’s DAI, with the addition of RAI.

Collateral Fee Collateral Ratio, % Ceiling, $ Floor, $
WSTETH-A 2.25 160 5M 15000
WSTETH-B 0.75 185 5M 5000
ETH-A 2.25 145 5M 15000
ETH-B 4.0 130 5M 40000
ETH-C 0.5 170 5M 5000
RETH-A 2.25 170 5M 15000
RETH-B 1.0 185 5M 5000
RAI-A 1.0 105 5M 15000
3 Likes

Awesome. Always thought it would be cool to see a multi-collateral RAI. Also would be good to see it on another network other than ETH-mainnet in the sense that it could allow more people to participate and experiment/learn the system. How would the 8% be distributed to reflexer?

2 Likes

This is great! I’ve been hoping/waiting for someone to do this! Actually makes me kinda bullish about FLX again too!

I do have a few questions though, first of which, why TAI? Is that an abbreviation of something?

Secondly, what value are you going to initialize TAI at? (Mostly just out of curiosity)

Finally, how was Fantom picked for testing, and do you have an idea of which chains you’re targeting?

Thanks again for doing/posting this. And let me know if you have a site/discord/twitter somewhere with more information!

1 Like

Not having FLX as the governance token or giving the vast majority of your token to FLX holders is almost insulting when you hint on asking for grants.

8%? Not even to FLX holders but to the DAO? And there is an ask to support infra and services through RAI grants? Come on

For what its worth, this is a good idea, and I support creating something like this, but this is a bit wild to see one of the bigger secondary use cases for FLX get downplayed like this. Might as well just do a token sale with that 8% to willing investors instead of asking to dilute the Reflexer treasury with more gov tokens to get the startup costs covered.

1 Like

Can you explain more about the “Token Allocation” part? So there will be another token that is not FLX which governs TAI, right?

If so, we agreed with @Tirion that it is a bit insulting to allocate only 8% to the Reflexer DAO and not even to the FLX holder.

However, we support the idea of creating an alternative stable asset like this. It is sad to see “one of the bigger secondary use cases for FLX get downplayed like this”. Should reconsider the allocation, at least change from allocating to the DAO to the FLX holder.

2 Likes

I believe by “DAO” they mean DAO/members FLX holders, but it would be good to get clarity on this. I also do agree that 8% feels a little low. It should also include FLX stakers.

Hey @Bacon, thanks for the questions.

The name TAI is not final, we want to hear other options from the community. It was chosen because it rhymes with both RAI and DAI, and it also makes a nice pair with the governance token name “MAI.”. Our idea though is to make a poll further down the line, if you have any suggestions please shoot!

The value is also open right now, it will either be community chosen, or a random value at the time of the launch making use of the new PREVRANDAO opcode. Testnet deployment was set at 10.

Fantom was picked for testing just because it has a generous faucet. We needed a large quantity of testnet ETH for this and finding hundreds of it for any of the Ethereum testnets proved hard.

We do not have a discord/site yet, we will announce it in the RAI community once these are ready.

1 Like

Hey @Tirion and @BristolBlockchain, thanks for the questions.

FLX is not the usual valueless governance token, it serves as the backstop for RAI. In order to use it, giving FLX minting rights TAI would be necessary, and this is something we think most FLX holders would be opposed to. Unsure if this is even possible after RAI was closed down for parameter changes.

The grants we mentioned in the initial post are up for discussion and we can move without them. We should also clarify that the grants are for specific costs before we can use the new treasury to fund them. In our view they are akin to an Angel check, and not a full funding round as you seem to have understood it.

With the above cleared, we feel the initial proposal is fair, if not generous. We are talking about 8% of the governance token for an angel check. The Reflexer DAO will be the only holder aside from the team and the community (that will earn through incentives once the system is up). The only precedent we could find was the H20 distribution, when 7% of the tokens were distributed to the Reflexer community. We are curious if any FLX tokens were distributed to the MKR community, where most of the system was built.

Regarding the distribution, we feel that giving the tokens to the Reflexer DAO is the simplest/best way of providing value to all FLX holders. The DAO can decide what to do with them, be it buying back FLX, providing incentives for RAI, using it for operational costs or even airdropping it to FLX holders as you seem to prefer. Looking at H2O once again we feel their distribution could be a lot better. Their gov tokens are being distributed to small subset of the FLX community by locking them away from RAI. These are users that could be shorting RAI (RAI3CRV stakers), participating in governance (FLX single sided stakers) or staking and protecting RAI (FLX/ETH stakers).

and what is the status of the project now?
where can one follow the evolution?

We are planning to launch in roughly two months.
We’re on discord! TAI