Exploring the potential of Liquid Staking and RAI

As of lately, with the Shanghai fork timeline set and the development of fractional staking platforms in the community’s sight, there is an opportunity for the Reflexer DAO to explore new revenue possibilities for the protocol.

While friendly forks are the path forward for diversification/experimentation, there are still some things that can be done by the DAO (in our case the Reflexer community) to build on top of an already resilient RAI system.

There aren’t too many revenue related ways to be explored in this direction -as RAI’s core contracts are already ungoverned – but the ones that exist, seam to have the capacity to better certain aspects of the protocol usage as debated in the forum and the discord server:

  • production cost optimization

  • value capturing – incentivization for RAI minters and liquidity providers, public pooled safes

First point is already being tackled and if this proposal passes, the stability fee will be reduced to 0.5%.

Second point could be approached through a community effort, from parties that have a vested interest in the success of this pure-blooded stable asset.

RAI Booster – the RAI Foundation’s proposal to the Reflexer DAO:

RAI Foundation is a non-profit set to uphold RAI’s public good Ethos, without any influence on the protocol itself. The Foundation is not associated directly with Reflexer team, nor has there been yet any formal acceptance of the Foundation as [one of] the official non profits that support RAI ecosystem in a non invasive way.

The opportunity arises for the RAI community to leverage through the Foundation’s RAI Booster - decentralized, trustless and permissionless staking solutions - in order to create its own yield bearing mechanism by offering Liquid Staking to the RAI ecosystem. Basically, staking infrastructure like the Geode Staking Library allow protocols to develop ways to transfer the yield of a volatile asset (ETH) to a stable asset like RAI, without interfering with RAI’s stability system, eliminating tail risk and adding to the Ethereum Network resilience.

By operating private or public permissionless and configurable staking pools, the RAI Booster would accrue the staking rewards for the RAI market participants (that want to stake ETH) and set withdrawal contracts accordingly, to boost existing/future LP reward contracts or to build new LP pools.

The public staking pools can be decentralized and even governed with the Reflexer governance token FLX

Key takings:

  • Increase TVL by offering Liquid Staking. This leverages ETH staking to incentivize LP without the need of a RAI fork
  • Generate sustainable revenue with a pool maintenance fee and/or staking as a service fees. Except for current Foundation expenses (~10% of revenue), the Foundation will pass the revenue to the Reflexer DAO’s governor. The community decides how this revenue will be used (example: support as much as possible of the protocol stability fee/borrow rate, aiming for RAI access point comoditization, avoiding underproduction of RAI)
  • Actively help Ethereum security through diversification
  • The setup would be fully segregated, providing security and avoiding tail risk to the RAI Booster and RAI system

State of the art

At this point, the Foundation is whitelisted as Node Operator with Geode infrastructure, on Goerli test network, testing private and public Pool initiation and steering, post Shapella.

Next steps

The aim is to spin-up a working RAI Booster on Goerli network and deploy it after Shanghai fork, once tested and functional. This wishes to be a community effort so jump in with the Foundation on Discord / Twitter to see how you can help!


Arguably, using Permissionless, Trustless Staking Solutions would better fit a friendly RAI fork, as per this Forum post, but it would do just that: promote a fork and the result would not be RAI - which is a positive thing - BUT, for the delight of hard-core RAI degens, this approach could also benefit the pure-blooded, battle tested RAI system and let its public good Ethos thrive!


Hey @goron_dan - I think it is a fantastic idea for the RAI Foundation to explore offering Liquid Staking. We are working with numerous DAOs/non-profit organisations to help them create an alternative revenue stream by offering Liquid staking through StakeWise V3. We would be more than happy to invite you to the StakeWise V3 testnet so you can explore creating a working RAI Booster within a Goerli testnet environment.

For context, StakeWise V3 is a white-label liquid staking solution that allows you to be in full control of your liquid staking offering. For example, you can specify the node operators who stake on behalf of the pool, the staking fees, brand your pool however you please (with a name, logo, description etc…), you can even choose the name for the unique ERC-20 token that represents deposits into the staking pool. The solution is fully automated, handling all deposits, validator creation, fees etc… and it very flexible allowing you to run whatever staking strategy under the hood (for example, any EL/CL clients, MEV strategy, DVT etc…).

For a community like Reflexer, I would love to see selected community members who are capable of running a node from home being the node operators in Reflexers own decentralised liquid staking solution.

Reflexer would then be free to either create a liquid ecosystem (liquidity and integrations) around your unique ERC-20 token, or allow your stakers to access the main liquid staking token of StakeWise V3, osETH (for which the StakeWise DAO is providing liquidity and integrations).

The Reflexer governance token will be able to fully govern this liquid staking offering too.

I’ll drop you a DM so we can look to arrange some time to discuss this further :slight_smile:


It really seems like this type of offering could materially grow the RAI community & TVL as well as hardening RAI’s staying power. Integrating a native yield puts RAI in a far more attractive position for users looking to store their money.

@goron_dan & @Jstar I just joined the discord, definitely looking forward to staying updated on where this goes. Thank yall for working so hard to uphold the ethos of ethereum & web3 :fist:


Hi, I’m from the Geode Finance team.

I think this is a great opportunity for the RAI community to integrate staking yields and attract more TVL and revenue while supporting decentralisation.

As mentioned in the post, @goron_dan is currently testing Geodes infrastructure and we’re supporting him with this process.

Excited to see where this leads!


This would be great :+1:
Right now people can not use their staked ETH as colateral it is less attractive to use ETH and mint RAI if i can also use a staked ETH to borrow a stablecoin.

This would help and distribute staking yields however it would make more sense to just allow users to use staked ETH to borrow RAI.


Hello all, I feel like an update is due for this post, especially with the recent spiking of interest for RAI in the discord server and the perspective of a V2 that would onboard minority staking derivatives as collateral.
While the ethos of the foundation hasn’t change, some things have morphed in response to recent [good I would say] changes in the MoneyGod fundamentals and recent technological developments in the Ethereum network, especially EIP-4788, so:

  • The name of the organization is dSentra, not RAI Foundation

  • We shifted away from a non-profit to a foundation operational framework, as the former is too legaly restrictive for the achievement of the main goals. Nothing extraordinary, we are still welcoming in community members that want to join

  • While supporting/funding public goods via staking rewards redistribution is part of the foundation’s general goals, we feel that having a RAI community native staking derivative that’s compatible with the GEB framework is an even better UVP

The nuts and bolts of this proposal can be found in this medium post


  • We’re building a RAI community native staking derivative, using a permissionless staking infrastructure
  • We feel that if it makes sense to have a RAI community native SD, it would make sense to run our own nodes, and onboard community members as node operators. DKG+DVT+minority clients policy is a given
  • Customize the staking derivative so that it helps RAI ecosystem grow grow and NOT pose threats on the Ethereum network itself, or break the GEB system.

I’ll close with a quote dear to me:

really like the thought of RAI becoming this bastion of decentralization by supporting minority stakers


Thanks for the update! I’ve just posted a full response here.