Hello Reflexer community!
I’m Ran, I’ve been watching RAI for a while and love the concept of a non pegged stablecoin!
Me and a couple of technical friends would like to help spread the RAI concept by building other systems like it. We saw you posted about BAI on the Badger forum and we think that’s a great starting point. I heard Stefan say that you’re taking things slow and test everything before you release a new product so we figured that joining forces could help accelerate the roadmap.
Below you can see a draft proposal for an incubation idea I shared with Stefan a few days ago. Any feedback would be much appreciated!
Proposal Overview
We propose an incubation program meant to deploy new RAI like systems backed by multiple collateral types. The first system of this kind would be BAI, the BTC backed stablecoin proposed by Fire Eyes and Reflexer on the BadgerDAO forum.
The incubation program would consist in the Reflexer team helping us with system deployment, hosting the app for BAI and advising us on the technical front. In exchange for the help, a sizable portion of our governance token will be airdropped to RAI users as well as used to incentivize RAI liquidity.
The BAI system can be deployed either on a L2 network or directly on L1 Ethereum, depending on which option allows us to launch earlier. We and our community would take care of maintaining the protocol in the long run so Reflexer can focus on RAI.
Who Are We?
We’re a team of three anon techies who have been in the crypto space since 2018. We’ve also been RAI community members since the mainnet launch and helped bootstrap the protocol during the early days.
We believe there is a need for truly decentralized stablecoins that are governance minimized and we think Reflexer built an amazing protocol that embodies our ideologies.
Technical Details
There are several areas to take care of in order to deploy BAI. The following are some of the most important ones.
- Deployment Infrastructure
We saw Reflexer is working on adapting RAI so it can be deployed on other networks. We can help build the infra to deploy BAI and in the process learn the ins and outs of managing the protocol.
- Frontend
Reflexer already has a frontend for RAI and, if the team agrees, we would love to take advantage of the existing code and host BAI on the same app as RAI.
This means that Reflexer would have control over the BAI frontend, especially in the beginning. We hope this aspect will help accelerate BAI development and give Reflexer more confidence that the project will be successful.
- Keepers
We will operate liquidation bots as described in the official docs as well as help improve the keeper infrastructure in order to handle other collateral types besides ETH.
- Governance
We plan to split governance in two categories: DAO governance and protocol governance.
DAO governance will handle token grants, marketing and other community initiatives. Protocol governance will handle any technical changes to BAI. We’re open to having the Reflexer team manage BAI with us in the beginning or, if they prefer that we are independent, we will manage the protocol ourselves and make a plan to move power to the community.
In terms of what collateral types we add in the system, we’d like to start with wBTC and then explore assets such as renBTC, sBTC and LP tokens containing tokenized BTC. We’d also like to discuss with BadgerDAO and include tokens such as ibBTC in the mix.
- PID Controller
Reflexer would need to allow us to use their PID smart contracts for BAI. We will take a similar approach to the one used for RAI and gradually adjust the controller parameters in order to build confidence in the system.
Incentive Alignment
Similar to FLX, BAI will have its own (un)governance token. We would like to achieve a wide distribution as well as incentivize Reflexer to support our initiative. The following token allocation is meant to fulfil these goals:
- 25% of the supply will be distributed at the BAI launch to those who used DeFi protocols that issue stablecoins. Namely, those who minted RAI, minted DAI or staked SNX in Synthetix. We would also like to distribute to those who used Badger vaults
- 10% of the supply will go toward incentivizing RAI liquidity and usage (ideally add RAI/BAI incentives)
- 10% of the supply will go to the Reflexer team for all the help they offer us. This allocation will be enforced through Sablier and will stream over 2 years
- 55% of the supply will be used by our DAO and to incentivize BAI growth as well as for day-to-day operations