TAI, the LSD-native lending protocol launches on Ethereum with rewards
The wait is over. After months of development, we are excited to announce that TAI is live on Ethereum mainnet!
Community rewards will start on Sunday, May 28th at approximately 1300 UTC. Rewards will be distributed in the form of RATE, TAI's governance token.
What is TAI?
Built on Ethereum, TAI protocol allows holders of ETH and LSDs to secure loans in the form of TAI, a collateral-backed, decentralized stablecoin. The TAI protocol supports a wide range of collateral, including ETH, wstETH, rETH, cbETH, and RAI, with more LSDs expected to be added. In addition to rewards, the TAI protocol will offer competitive interest rates for loans and lower than standard liquidation penalties for lenders.
The TAI protocol also proudly introduces a first-of-its-kind offering in the lending/stablecoin sector, giving TAI holders the power to directly influence governance decisions. As a TAI holder, you will be granted the right to veto proposals, an empowerment of stablecoin holders never seen before in this space.
Yet another feature that distinguishes TAI is its commitment to credible neutrality. With no VCs, investors, or pre-sales, the TAI protocol will achieve decentralized ownership through a fair launch.
How to get RATE rewards
TAI will launch with RATE rewards for users who mint TAI and/or provide TAI/ETH liquidity through the TAI app. The total weekly rewards emission is fixed and controlled by an emissions schedule in a smart contract. However, the split ratio of rewards between minting and liquidity provision will be dynamic and managed by the TAI team initially.
Basic information on the RATE token:
-
Total RATE Supply: 1,000,000
-
Team: 10% (vested over 3 years)
-
Treasury: 7%
-
Community: 83%
-
Community Treasury: 5%
-
Mint/LP Rewards: 78%
32.94% of the community allocation will be distributed in the first 1 year. 86.44% of the community allocaiton will be distributed in the first 5 years. 98.16% of the community allocation will be distributed in the first 10 years.
-
Read here for learn more about rewards emission.
Standout Features
-
Governance rights for stablecoin holders: TAI holders possess the power to veto governance proposals, either directly or through delegation. For a veto to be effective, a certain percentage of the total TAI in circulation must indicate their intent to veto.
-
Lower Liquidation Penalties: TAI 2-5% (collateral-specific) vs RAI 10% vs DAI 13%.
-
Buyback-and-burn: TAI will adopt the buyback-and-burn token model of DAI/RAI using RATE. Surplus from safe interest and liquidations will be auctioned off for RATE at a discount. The RATE collected is automatically burned.
With TAI's innovative features and lucrative rewards, we believe TAI will become a preferred loan facility for LSD holders and a reliable and decentralized stable asset for Defi. Make sure to join us in this journey by Sunday, May 28, 2023 and start getting your share of community rewards!
Learn more about TAI
Appendix 1: Comparison
Appendix 2: Fees and Safe information
