TAI is a protocol on Ethereum that allows users to receive loans against their LSD collateral. Users can lock their collateral in a safe and receive a loan. The loan comes in the form of TAI, a stable ERC-20 token. The user incurs a small fee(0.5-4% annualized) on their loan, depending on the collateral used.
TAI is a fork of the security proven DAI/RAI architecture and codebase.
Veto Power for Stablecoin Holders
Holders of the stablecoin TAI can vote to veto any proposal passed by governance. The threshold needed to enact a veto is 25% of total TAI supply.
Community Ownership and Rewards
Currently, users receive rewards for getting a TAI loan and also for providing liquidity in the TAI/ETH pool. Rewards are distributed in RATE, the DAO token of TAI.
RATE can be used to vote on system decisions and parameters. RATE holders can also bid to exchange their RATE for surplus revenue from the system.
Decentralization of Liquid Staking
The vision of TAI is to support many new upcoming Liquid Staked Tokens(LSTs) as collateral. Adding support for new collaterals supports the diversification of liquid staking and thus strengthens the decentralization properties of the Ethereum ecosystem.