What is Reflect Money? a16z leads a $3.75 million investment to create a stablecoin with 100 times capital efficiency.

Reflect Money is a new generation stablecoin protocol that has launched its flagship yield-bearing stablecoin USDC+ on the Solana blockchain, raising $3.75 million in funding. This round of financing was led by a16z Crypto CSX, with participation from Solana Ventures, Equilibrium, Big Brain VC, and others.

What is Reflect Money? AI-driven DeFi protocol with a dual-chain layout

Reflect Money is an innovative project that combines artificial intelligence, decentralized finance, and user experience, with deployments on both the Base chain and Solana chain. On the Base chain, it has created a reflection token ecosystem with the token symbol $REFLECT (RFL). On the Solana chain, it has launched a yield-bearing stablecoin USDC+. The protocol positions Reflect Money as a bridge between automated decision-making and real DeFi yields.

Reflect Money is a crypto project based on Base, and its native token RFL adopts a reflection mechanism: a portion of each buy and sell transaction is redistributed to holders, encouraging long-term holding. This mechanism is similar to stock dividends but occurs automatically and instantly. Whenever someone buys or sells RFL, a certain percentage of the transaction amount (usually 2-5%) is distributed to all existing holders based on their holdings.

The team will also promote Reflect as a platform that combines AI governance and DeFi integration. Reflect plans to introduce AI agents in the operation of the DAO to automatically handle proposals, adjust parameters, and provide on-chain decision support. The goal is not to replace manual voting, but to accelerate the governance process, reduce friction, and filter out higher quality proposals for the community.

RFL has been listed on multiple exchanges and experienced significant price fluctuations. As of early September 2025, the project's market capitalization is approximately $2.8 million, and it has completed a round of financing totaling $3.75 million to accelerate development and integration.

USDC+: A yield-generating stablecoin with 100x capital efficiency

Reflect Money addresses the long-standing issues in the decentralized finance sector—specifically, the low efficiency of stablecoins on-chain. Currently, most stablecoins rely on interest generated from off-chain custodial systems, which limits their ability to fully utilize the native yields of the blockchain. The Reflect stablecoin aims to eliminate this bottleneck, allowing users and developers to directly earn from the blockchain’s native mechanisms without intermediaries, transforming idle assets into productive capital.

According to the team's introduction, the protocol can increase capital efficiency up to 100 times that of traditional stablecoin mechanisms. Users can now seamlessly deploy assets on-chain strategies to capture yields that previously required intermediary systems or off-chain financing. This enhancement in capital efficiency comes from directly utilizing blockchain-native yield mechanisms, rather than relying on centralized intermediaries.

Six Core Advantages of USDC+:

Non-custodial: All collateral deposits are held in program accounts on the issuing network, and no one can access them.

No Permission Needed: All stablecoins can be created and exchanged freely, with no restrictions or access controls.

Liquidity: Utilize the liquidity of the entire collateral pool to achieve MEV-free, perfect token-to-token exchange rates.

Programmable: Only a few lines of code are needed to create the next generation of stablecoin fintech applications.

Yield Bearing Capacity: Interest is paid based on the underlying strategy at the target interest rate.

Customizable: Choose a strategy to package a base stablecoin into your own yield digital currency.

Delta Neutral Strategy: How to Capture Financing Rate Income

Reflect involves multiple yield strategies and has established a synthetic currency exchange on Solana, extracting neutral yields from Liquidity Staking Tokens (LSTs). This approach attempts to capture both native staking rewards and perpetual contract funding rate yields, injecting them into liquid, yield-bearing stablecoin products.

The operation principle of the Delta neutral financing rate capturing strategy is as follows: this strategy employs unilateral Delta neutral trading, where users or integration programs deposit production capital and open a short position equivalent to the same asset in US dollars. For example, if a user deposits 100 USD in SOL, they will short 100 USD in SOL, thereby establishing a zero Delta position. This eliminates price risk exposure (i.e., the risk exposure of price increases and decreases) while increasing the funding rate exposure, which can be determined as the strategy's earnings or potential losses.

The full margin interest rate capture strategy employs a bilateral Delta neutral trading approach, where collateral is converted into cash upon deposit and is used to trade on both sides of the same market at the same execution price. This eliminates the risk exposure to price and financing rates, while increasing the risk exposure to cross-margin capital requirements. The cross-margin capital interest rate depends on the number of people engaging in leveraged trading across all markets on the perpetual contract exchange, and this trading demand increases the demand for cash, thereby raising the yield paid to investors depositing cash into the market.

The launch of USDC+ comes at a critical moment when decentralized finance is seeking more efficient and advanced stablecoin models. By directly integrating yield functionality into the stablecoin itself, Reflect Money makes USDC+ a solution for individual users and DeFi product developers on Solana.

Risk and Insurance Mechanism

Reflect combines experimental AI governance with innovative DeFi products. While attractive, the risks are also high. Key indicators to focus on include the product launch status, the audit results of smart contracts and AI agents, as well as liquidity on major exchanges.

Reflect has established a four-step risk framework: asset classification systematically defines the effectiveness of assets as strategic collateral; economic security audits review strategies through simulations and backtesting driven by academic papers; code security audits come from reputable third-party research providers; global insurance is supported by self-insurance agreements backed by consensus networks and re-staking pools. This $3.75 million funding will be used to accelerate user adoption, expand protocol functionality, and strengthen liquidity infrastructure.