Aave RAI (ARAI)

Aave RAI, the crypto

Aave RAI (ARAI) is a stablecoin backed by a basket of collateral assets, which include ETH, LINK, and SNX. It was created in partnership between Aave, a leading DeFi platform, and Reflexer Labs, a decentralized protocol that aims to create an autonomous, self-stabilizing stablecoin that's resistant to market shocks.

The point

The main point of Aave RAI (ARAI) is to create a robust, decentralized stablecoin that's more stable and resistant to market volatility than other pegged cryptocurrencies, such as Tether (USDT) or USD Coin (USDC). Aave RAI (ARAI) is designed to automatically adjust its supply to maintain its peg to the price of one Special Drawing Right (SDR), which is a basket of international reserve currencies used by the International Monetary Fund (IMF). This makes Aave RAI (ARAI) a reliable store of value for users in the DeFi ecosystem.

The problem

One problem that Aave RAI (ARAI) tries to solve is the lack of stability in other pegged cryptocurrencies that are used as a collateral asset in the DeFi ecosystem. These cryptocurrencies are often subject to market volatility, which can result in liquidation events, where users lose part or all of their funds. Aave RAI (ARAI) aims to provide a more stable alternative to these collateral assets, which can help reduce the risk of liquidation and increase the overall stability of the DeFi ecosystem.