TechFlow reports that Ethereum co-founder Vitalik, during a discussion in the Reflexer Finance Discord, stated that RAI, as the first stablecoin on the Reflexer platform, has the potential to become a proactive force supporting non-dominant liquid staking derivatives (LSDs). He believes RAI's rise could help address the issue of Lido's dominance in the LSD ecosystem, given that Lido currently controls over 30% of LSDs in the crypto market.
Vitalik suggested that if the RAI community adopts more active governance measures to support staked ETH tokens—specifically favoring non-dominant forms of staked ETH tokens (i.e., LSDs not issued by Lido)—this would promote the development of less popular LSDs. Reza.eth, a member of the RAI team, noted that Vitalik's idea aligns with the project team's plans, emphasizing that more governance efforts are needed to back less dominant LSDs.
