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# System prepended metadata

title: '[Proposal] Subsidized RAI Bonding curve'

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# [Proposal] Subsidized RAI Bonding curve

Authors: @guifel 
## Summary
Open a RAI bonding curve with 6 million FEI subsidized. This would mean the PCV acquiring up to about 2 million RAI (0.8% of the PCV). The RAI would be allocated to the Rari Capital Fuse pool 9 which currently yields about 50% APY.


## Background on RAI
RAI is a decentralized and governance minimized stablecoin. It launched in February 2021, the current market cap is $50m and the TVL is $160m. RAI has managed to stabilize using its on-chain PID controller and is now undergoing a governance minimization process with the intention to harden the protocol. RAI follows the same overcollateralization model of MakerDAO's DAI but is exclusively backed by Ether. While not being strictly pegged to 1 dollar, RAI is stable showing a daily volatility well under 1% on most days. 
- Coingecko page: https://www.coingecko.com/en/coins/rai
- RAI stats: https://stats.reflexer.finance/
- Dune analytics stats: https://dune.xyz/HggqX/Reflexer-RAI  
- Main app: https://app.reflexer.finance/

## Motivation
The goal is diversification of the PCV, getting some exposure to fiat currencies. RAI offers a truly decentralized alternative to traditional stablecoins that are often directly or indirectly backed by custodial assets. Acquiring RAI is a first step toward achieving the stablecoin allocation target according to the [PCV guidelines](https://drive.google.com/file/d/1bgBGC9ZJqxtSEe7xnRM47Vu8De_1HVDC/view). Further more 
## Risk Analysis
For this risk analysis we reuse the recent assessment from the Aave team from the [RAI aave onboarding proposal](https://governance.aave.com/t/arc-add-support-for-rai/3862).
![](https://i.imgur.com/RvkjBdt.png)

Smart-contract audit repo that includes audits from OpenZepplin, Quantstamp and Solidified:
https://github.com/reflexer-labs/geb-audits
## Specification
Open a RAI bonding curve with 6 million FEI subsidized.

Bonding curve parameters:
- Scale 6M
- Discount pre-scale 1%
- Premium post-scale 2%

Allocation: 100% to [Rari Fuse pool 9](https://app.rari.capital/fuse/poo)

RAI address: `0x03ab458634910AaD20eF5f1C8ee96F1D6ac54919`
RAI/ETH Chainlink Oracle for the bonding curve: `0x4ad7B025127e89263242aB68F0f9c4E5C033B489`
Rari Fuse pool 9 RAI cToken Address: `0x752F119bD4Ee2342CE35E2351648d21962c7CAfE`
Rari Fuse pool 9 Comptroller: `0xd4bDCCa1CA76ceD6FC8BB1bA91C5D7c0Ca4fE567`


## Voting
[Forum poll]