RAI Finance Review: What It Is, How It Works, and Why It Matters

When you think of stablecoins, you probably think of USDT or USDC—coins tied to the dollar. But RAI Finance, a decentralized stablecoin protocol built on Ethereum that doesn’t peg to any fiat currency. Also known as RAI token, it’s designed to stay stable by reacting to market demand, not by being backed by dollars. That’s not just different—it’s radical. While most stablecoins rely on reserves or algorithmic adjustments to maintain a $1 price, RAI lets its value float. It doesn’t chase a target. It finds one.

RAI Finance works through a system called Collateralized Debt Positions, user-managed vaults where crypto assets like ETH are locked to generate RAI debt. Also known as CDPs, these vaults act like loans where you borrow RAI by putting up collateral. If the price of ETH drops, your vault gets closer to liquidation. If it rises, you gain more breathing room. There’s no oracle telling RAI what to be worth. Instead, a feedback loop called the Redemption Rate, a dynamic interest rate that adjusts automatically to pull RAI’s market price back toward equilibrium. Also known as target redemption rate, it’s the invisible hand that keeps RAI stable without a fixed peg. This makes RAI resistant to regulatory pressure and fiat volatility. It’s DeFi’s answer to centralized stablecoins that can be frozen, delisted, or de-pegged overnight.

RAI Finance isn’t for everyone. If you want a coin that’s always $1, you’ll find it frustrating. But if you believe in decentralization over predictability, if you want a stablecoin that survives blackouts, sanctions, or bank runs, RAI is one of the few projects built for that future. It’s not about convenience—it’s about resilience. And that’s why users who’ve weathered crypto crashes keep coming back to it.

Below, you’ll find real reviews, technical breakdowns, and user experiences from people who’ve used RAI in live markets. Some made money. Others lost it. All of them learned something. Whether you’re considering locking ETH into a vault or just curious how a stablecoin can work without a peg, these posts give you the unfiltered truth.