maurelian
@maurelian.eth
What happened to RAI? It seemed very promising. The price has actually been reasonably stable-ish for quite a while (since a rocky start). We need a properly decentralized algo stable more than ever right now.
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shazow
@shazow.eth
There's a bunch of analysis posts that have been written over the years, I can dig them up. IIRC the tldr is the price was not meant to be pegged, but rather dampened against volatility of the collateral (ETH). It used positive/negative interest rates as incentives to push/dampen the price action. But that has a cost, so I think an equalibrium of volatility around an average price point trends downwards slowly (as that "dampening" cost is slowly extracted). HAI is a similar design but introduces multiple collateral assets with yield earning, so it should do a better job maintaining a more stable price target despite the dampening cost.
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maurelian
@maurelian.eth
This is the best explainer I've found if that's what you're thinking of. https://dankradfeist.de/ethereum/2023/01/31/rai-crypto-experiment.html I have a decent understanding of the mechanism (classic PID controller), and that you're basically getting dampened but not zero volatility in exchange for stronger decentralization. But I can see how the consistent downtrend in '23 could turn off a lot of people, and the local spikes are pretty big which I see as more of a negative than the longer term volatility
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maurelian
@maurelian.eth
HAI not looking that great either, and the mcap is $34k.
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Señor Doggo
@fubuloubu
PID controllers are very flexible controllers, but the flip side of tuning them to maintain stability in a very dynamic system is that you just have to be super conservative about response. Hence why Rai has like 1 month response where it closes down on volitlity. If you made that like 1 hour it would be completely unstable I have been waiting to see more advanced designs using results from modern control theory (which has been around since the 60s) as you could probably do something really cool with more advanced model weights, feed-forward mechanisms, etc. But... Nothing of that sort yet. God I wish I had time to develop these ideas myself
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