Thread by @CroissantEth

With the violent explosion of Maker DAO recently, I am very surprised that $FLX has not begun to blow up...

What is $FLX?

$FLX is the “ungovernance” token of the new Reflexer ecosystem.

In this thread I will go over why I think this will be a top gainer in the coming weeks!👇🏻

@reflexerfinance was started by Stefan Ionescu, & it is advised by Nikolai Mushegian, the co-founder of Maker DAO

$FLX was what Nikolai had originally envisioned for a significant portion of the MakerDAO ecosystem and is part of why he working with Stefan to realize this vision

There are a few key differences between MakerDAO & Reflexer, which may just give it a particular advantage over many other multi billion dollar stable coin protocols in DeFi.

How? The “Reflex Bond.”

Pioneered by @reflexerfinance, a reflex bond dampens the volatility of an asset

The first Reflex bond created via Reflexer is $RAI, which serves as a non-pegged, $ETH-backed stable asset for DeFi.

Contrary to $MKR & $DAI, $RAI is a stable asset which will provide adequate dampened volatility for an asset (like $ETH), significantly decreasing liquidations.

To fully understand the implications of Reflexer, let’s go over some of its many use cases for DeFi:

Yield Aggregators - Protocols that deploy capital in order to get the best yield for their users (e.g $YFI) can leverage $RAI (and its intrinsic redemption rate) to boost returns

#DeFi collateral - $RAI can be used as an $ETH supplement or alternative collateral in #DeFi protocols due to the fact that it dampens ether's price moves and gives users more time to react to market shifts

(It has already been integrated with $CREAM, $RGT, and much more!)

DAO reserve asset - DAOs can keep $RAI on their balance sheet and get exposure to $ETH without being affected by its full market swings

@VENTURE_DAO announced that they will be using $RAI for exactly this purpose.

🚨ALPHA: you can do this on top of earning $FLX right now 😉

To understand exactly how it works, let’s analyze how the system would react in the case of a “black swan”

$RAI shields against sudden moves in the markets. For example, if $MKR had used reflex-indexes as collateral in March, vault creators would be able to avoid liquidations

Pretty cool, right?

Well this last concept takes the cake for me, and reveals exactly why I’m so bullish on the $FLX & $RAI protocol.

As the native token of the ecosystem, the main purpose of $FLX is to decentralize the protocol as much as humanly possible.

“similar to other models such as the Maker protocol, the RAI system will have surplus and debt auctions. Debt auctions will autonomously mint and auction new FLX in case the system is underwater...

once the vast majority of governance capabilities are completely removed from the system, the community will be able to decide on how, when and if to securely governance minimize any remaining components...

$FLX will facilitate further ungovernance and allow the community to take decisions on how to remove themselves from discretion over the protocol...

Where they continue, adding that they are:

currently discussing with the community about a potential third function for $FLX: lender of first resort. This would mean that $FLX could be added in a staking pool that gets slashed in case there is bad debt in the system.”

Can you imagine the implications of a trust minimized stable asset like this?

It is very important to know this goes for ALL of the indexes made via @reflexerfinance 👀

As a lego for #DeFi, we can expect many others to be building on top of the platform.
medium.com/reflexer-labs/…

Something that is even more exciting is the token economics of $FLX.

A lot of people are under the assumption that the current supply is MUCH higher than it really is...

From their article on $FLX, we know that over 95% of the supply is locked (not circulating)

The total supply of $FLX is 1,000,000

65% (650,000) of these tokens will be locked for several years, owned by the DAO treasury, team members, and core people building on the protocol

35% (350,000) of these tokens will be used to incentivize liquidity for $RAI until 2023

The current circulating supply for $FLX is 46,950, putting it at an astounding $45M mcap at the time of this writing (token price is ~$961)

Until July 18th, 334 $FLX are released a day, amounting to only 30,060 $FLX released this way in the next three months

Outside of this method, the only way tokens will be released is through a liquidity mining program which will begin shortly and run for many, many months

It it likely the circulating supply of $FLX will not even reach 100,000 this year 👀

Now before I run out of room in these tweets, I wanted to point out one thing that caught my attention in particular, including are several tweets from @VitalikButerin, the founder of $ETH.

Here he is explaining his confidence in $RAI many months back:

https://twitter.com/VitalikButerin/status/1263191590543253504

& another one, which appears to be @VitalikButerin subtlety describing @reflexerfinance and its exact functionalities. 👀

https://twitter.com/VitalikButerin/status/1300611609715339265

Even more interestingly, it appears that Vitalik Buterin even got $56K worth of $RAI a few weeks ago and pooled it on Uniswap for $FLX rewards!

etherscan.io/tx/0x9bee7d5bc…

CONCLUSION:

Here we have the original concept of $MKR, being built by core members of Maker DAO, backed by Vitalik Buterin & many others, sitting under $50M mcap with hundreds of millions of dollars in TVL

It offers an elegant solution to scalability and solvency within DeFi...

For even further reference, I’ll now compare $RAI & $FLX to its corresponding mcap of other big stable coins.

$MKR - $3.1B
$DAI - $3.3B

$TRIBE - $508M
$FEI - $1.5B

VS

$FLX - $45M
$RAI - $92M

Don’t you notice quite the difference in their respective values? 😅

REFLEXER LINKS

WEBSITE: reflexer.finance

DEX TOOLS: dextools.io/app/uniswap/pa…

APP: app.reflexer.finance

DISCORD: discord.gg/sG4UtZ4Uut

This concludes my write up on $RAI, if you enjoy content like this, please consider showing your support by sharing this thread!

TLDR; I believe @reflexerfinance has a tremendous use case and is significantly undervalued.

With backing from Vitalik Buterin and Maker DAO, $FLX is severely undervalued at $45M mcap

This is like getting in to $MKR with only 1,000 holders...

Enjoy! 🍞
coingecko.com/en/coins/refle…