EP 52: Throw those 2017 notes away. This is how to understand Stable Coins in 2021.

Stablecoins are no longer what they used to be in 2017, as they
have changed a lot from then till today in 2021. To understand
how stablecoins are created and to compare different stablecoins,
we must know 3 important characteristics: collaterals,
mechanisms, and pegs — explained in this episode.


Why do we care about stablecoins? Because finding a mechanism to
maintain its peg is the first step towards creating a global
currency instrument that is decoupled from the country-based
economy.


So, to figure out and experiment this mechanism, we explore the
toolkit in #stablecoins. Think of them as the ingredients to the
stablecoin recipe, in which you can tweak and play around with.
The goal is to find a mechanism to create a stable asset as an
output, so we can use this asset to trade and transact with
economic agents in other ecosystems. Aka using USD to transact
with someone in another country.


Timestamps:


0:00 – Introduction to stablecoins


0:38 – Collaterals, Mechanisms, and Pegs


1:58 – 2017 Stablecoin Mechanisms


3:46 – 2021 Stablecoin Mechanisms


7:21 – Pegs


10:01 – Amount of Collaterals


11:55 – Types of Collaterals


12:39 – How they all work together


14:12 – The future of stablecoins


15:35 – Closing





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