Rico Credit System

Rico is a free-floating collateralized stablecoin designed with an emphasis on automation and market rate discovery.

Rico is the spiritual successor to Dai and Rai, aiming to deliver the system as it was originally designed, without compromises.

Dai was the first system based on our design, but now it has deviated from that design substantially:

• The Dai team chose to transform the approval voting system for oracles and collateral onboarding logic into a simple majority voting system, which we believe is not an incentive-compatible mechanism.
• The Dai team chose to peg Dai to the dollar, instead of letting the TRFM control a variable price definition.

Rai was a reaction to cracks revealed in the dollar-pegged design. The Rai team re-enabled the TRFM and showed that it works, but made other changes:

• The Rai team restricted the collateral to only include ETH, which sidesteps the issue of collateral onboarding, but limits scale and utility.
• The Rai team chose a particular set of 3rd party oracle solutions, which sidesteps the problem of oracle selection in the short term, but which might become a vulnerability in the long term.

We have seen that it is impossible to make any short-term tradeoffs with the idea of fixing it later, and that “gradual decentralization” is a myth. This time we will get it right before we deploy anything.

Links

• Why Rico – How and why is Rico different from Dai and Rai
• dsuite – Step one is to secure the software supply chain
• Chat on Matrix
• Code on GitHub – Email us for early access