RAI offers an alternative to centralized stablecoins that DeFi needs and it would see significant use on Compound.
The ungovernance process aims to remove the ability to change key parameters and have a fully automated system. This means that RAI holders and minters won’t have to take into account governance risks when using the system. It should also prevent governments from directly interfering with RAI/Reflexer.
Ungovernance is a huge divergence from almost every other project in the DeFi space and a necessary hedge given the current regulatory climate in the United States and elsewhere.
Furthermore, I think RAI would see significant use on Compound on both the borrow and supply sides. I won’t get too in-depth into RAI’s PID mechanism but basically, if the RAI market price is above the “redemption price” (e.g. the target price that the system wants to achieve) then it begins to decrease the amount of collateral needed to mint RAI, which creates more sell pressure. Conversely, if the market price is below the redemption price, the system increases collateral requirements.
This means that during times of volatility there can be significant demand for borrowing and lending of RAI, which would generate significant revenue for Compound.