HAI - A decentralized and overcollateralized stablecoin

Ever heard the saying “Don’t get high on your own supply”?
Well, HAI flips that on its head
Use LSTs & OP native assets as collateral to get HAI — a decentralized and overcollateralized stablecoin
Ready to get HAI? Let’s dive in

1/ Introduction to @letsgethai
Largest CDP protocol on #Optimism
Where you can deposit collateral like WETH, wstETH, rETH, OP, etc., and take a loan in HAI
Over 45% of TVL across all CDPs on OP is in HAI Vaults

2/ HAI An over-collateralized CDP-minted stablecoin
Has a diverse collateral base including LSDs & other tokens
Uses a floating peg, unlike USDC/USDT, which are hard pegged to the $
The peg is set by a Proportional-Integral-Derivative (PID) controller to induce stability

3/ HAI has two important prices
• Market Price (MP): What people are paying for HAI in the market

• Redemption Price (RP): What the HAI system believes HAI should be worth, initially $1

4/ HAI mechanics
The system uses a smart PI controller to adjust HAI’s value
If MP > RP
The system sets a negative interest rate, making it cheaper to owe HAI over time
This encourages selling HAI to stabilize the price

5/
If MP < RP
The system sets a positive interest rate, making it more expensive to owe HAI over time
This prompts buying HAI to pay off debts, pushing the price up

6/
These adjustments help keep HAI’s value close to $1, balancing supply and demand
Basically, HAI’s smart controller tweaks interest rates based on market conditions to keep its value stable
HAI is a multi-collateral fork of RAI @reflexerfinance with the same basic mechanics

7/ Simplified
The market price of HAI can’t deviate from the RP for too long due to smart incentives

• If the price is too high, people borrow and sell HAI
• If the price is too low, borrowers buy back HAI

This helps keep HAI’s value stable and in line with its target RP

8/
Ensuring that it remains a reliable and predictable stablecoin
Users must carefully manage HAI minting
If collateral value drops too much, it can be seized and sold in a collateral auction to protect HAI’s value and ensure confidence in the protocol

9/ KITE
Governance token for ensuring a decentralized and community-driven approach
KITE holders can vote on system changes and the protocol’s development, like adding/removing collateral types

10/ Plus, HAI boasts the best dapp design in the game
It’s user-friendly and efficient
Easy to deposit collateral and take out loans
Check it out for yourself and get HAI on your own supply

11/ Official Links
Discord
https://discord.com/invite/pX8m6zXNKu…
X
@letsgethai
Telegram 
https://t.me/+0iIhX0f9DDAxODE5…
Website
https://www.letsgethai.com/