We will use the term “reflex-bond”, pioneered by Nikolai Mushegian, to refer to this new asset.

The purpose of a reflex-bond is to be a more stable representation of its collateral while still maintaining a high level of trustlessness. If used in other protocols, a reflex-bond can shield its users against major and sudden moves in the cryptocurrency markets. For example, if Maker had used reflex-bonds as collateral prior to Black Thursday, CDP creators would have had more time to avoid complete liquidation.