EP 54: How to analyse token economics of Stable Coin | $FRAX Economics Analysis and Design

In this week's episode, we talk about FRAX, a fractionalised
algorithmic stablecoin. Using the token economics framework that
we have explained in other videos, we will analyse the token
economics of the $FRAX stablecoin, perform stability analysis on
it, and give some opinions about FRAX.





Timestamps:


0:00 – Introduction & Contents


0:36 – What is Frax?


2:38 – Dual-Token Mechanism explained


3:34 – Reserve Mechanism explained


4:36 – How to create $FRAX stablecoin


7:11 – How to Maintain Stability


11:10 – Stability Analysis of FRAX


16:32 – Opinion: Elasticity in Collateral


17:15 – Opinion: backing by USDC





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