RAI is a non-pegged stable asset solely backed by ETH. Together with Fire Eyes DAO, we presented RAI in a separate proposal for the Index community a while ago.
This post is meant as a temperature check on the idea of a ETH 2x FLI backed by RAI or a Uniswap RAI/ETH LP token.
The proposed parameters for a RAI backed FLI would be similar to the ones for the ETH backed version.
- Underlying Asset: RAI or Uniswap v2 RAI/ETH LP
- Target Leverage Ratio: 2
- DeFi Lending Protocol: Rari Capital Fuse/CREAM
- Maximum Leverage Ratio: 2.3
- Minimum Leverage Ratio : 1.7
- Recentering Speed : 5%