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 Want more in-depth content? 1) Support us on our Patreon: www.patreon.com/economicsdesign 2) (Textbook) The Economics and Math of Token Engineering and DeFi https://book.economicsdesign.com/ 3) Academy: https://academy.economicsdesign.com/ 4) Newsletter: https://economicsdesign.substack.com Connect with us and the ED community: Discord – https://discord.gg/ZqgpzdbZP2 Twitter – https://twitter.com/econsdesign Reddit – https://reddit.com/u/economicsdesign

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We talk about the design of economic systems. This could be video game simulated economy or real business world like frequent flyer points system or blockchain based token economy. Want more in-depth content? 1) Support us on our Patreon: www.patreon.com/economicsdesign 2) (Textbook) The Economics and Math of Token Engineering and DeFi https://book.economicsdesign.com/ 3) Academy: https://academy.economicsdesign.com/ 4) Newsletter: https://economicsdesign.substack.com Connect with us and the ED community: Discord – https://discord.gg/ZqgpzdbZP2 Twitter – https://twitter.com/econsdesign