DeFi project Reflexer Labs completes $1.69 million seed round financing, Paradigm leads investment

According to Coindesk, DeFi project Reflexer Labs completed a $1.68 million seed round led by Paradigm. Standard Crypto, Compound founder Robert Leshner, and a16z former partner Jesse Walden founded a new crypto venture capital firm Variant Fund with participation. Reflexer Labs is creating a new asset rai (RAI) designed to track slow Ethereum price movements, providing DeFi with a collateralized asset that is both price stable and decentralized. The generation of RAI is very similar to dai (DAI), that is, users pledge the asset Ethereum to the system to borrow other encrypted assets. However, RAI’s goal is biased towards the “redemption rate” relative to its underlying assets, and it eliminates volatility to a large extent (the exact ratio is currently not specified). Reflexer’s products will use an oracle to track the price of RAI and ETH. If the RAI does not match the target price, the system can fine-tune the amount of RAI required to repay the debt. Ionescu, CEO of Reflexer Labs, said that RAI is critical to the agreement. Eventually, Reflexer will need to deploy some kind of MKR token similar to MakerDAO, with limited control rights, in order to fully realize decentralization.