Economics Design

From the past to the future, how can we build the future of finance using lessons learnt from before? Josh and Lisa discusses! Please consider donating to help fund these educational videos: 0x6da9AAa73D39F3880119Fd20e6d6a2f65Dd44ABe or tip us at https://www.patreon.com/economicsdesign 00:00 Introduction 02:45 What History Has Taught Us 14:54 How Tokens Can Coordinate Market Creation 20:52 Dealing...

Is Bitcoin a form of stored energy? Dave and Lisa discusses how universal basic income may be addressed using Bitcoin! Please consider donating to help fund these educational videos: 0x6da9AAa73D39F3880119Fd20e6d6a2f65Dd44ABe or tip us at https://www.patreon.com/economicsdesign 00:00 Introduction 01:01 Interest In Bitcoin 02:54 Economy Is Energy 05:43 Traditional Energy Sources 07:58 Renewable Ene...

We take a look at how the Antimatter protocol can potentially simplify DeFi! Connect with Jack here: https://twitter.com/jack_venture Please consider donating to help fund these educational videos: 0x6da9AAa73D39F3880119Fd20e6d6a2f65Dd44ABe or tip us at https://www.patreon.com/economicsdesign 00:00 Introduction 01:35 Conversation With Jack Lu 38:30 More Resources & How to Support Us! Want more...

We found a problem that crypto truly solves - public goods and #DAO! Please consider donating to help fund these educational videos: 0x6da9AAa73D39F3880119Fd20e6d6a2f65Dd44ABe or tip us at https://www.patreon.com/economicsdesign 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://...

In the previous EP 58: Analysis of UST (TerraUSD) | Algo Stablecoin on Terra,, we mentioned that UST is 1% within the range but mostly outside of the $1±5% range. Turns out, we are wrong! This video is meant to correct the mistake. EP 58: https://youtu.be/w_AdzPFM58g Please consider donating to help fund these educational videos: 0x6da9AAa73D39F3880119Fd20e6d6a2f65Dd44ABe or tip us at https://www....

Another stablecoin? All weather stablecoin with Gyroscope. Always stable. Please consider donating to help fund these educational videos: 0x6da9AAa73D39F3880119Fd20e6d6a2f65Dd44ABe or tip us at https://www.patreon.com/economicsdesign 00:00 Intro & Overview 03:58 Gyroscope Collaterals 09:16 Minting Gyro Dollar 10:42 Mechanisms To Maintain $1 Peg 11:58 Earning Yields 12:53 PAMM vs Underlying Ass...

Many of you have been asking for an episode on UST, the algo stablecoin on the Terra network. So today, we take a dive into how UST works, how it is created, analyse its stability, and more. - Timestamps: 0:00 – Intro & Overview 0:51 – UST vs LUNA 1:14 – Classifying Terra 1:50 – $LUNA 3:05 – UST Creation 4:34 – 3 factors affecting Stability of UST 8:37 – Analysing UST Stats 10:25 – Analysing t...

Flashbots & Miner-Extractable Value are problems faced by decentralised exchanges (DEXs). In this episode, we explain what flashbots and MEV are all about and what solutions there are. We also explain in-depth the risks of ETH like front running, and several design flaws in DEXs. This recording was extracted from our free-to-join Discord lounge sessions. We host lounge sessions on Sundays, whe...

Liquity presents a unique approach to decentralisation, without a governance token and several other notable features. In this episode, we dive deep into Liquity's mechanisms, economics, and what it means for the DeFi space. The chat segments are extracted from our Discord lounge session with Robert. We host lounge sessions on Sundays with guest speakers, absolutely free to join for the public, wh...

We have several recommendations to make, after all the research we have done recently on algo stable coins. To be specific, we have 3 recommendations regarding the secondary token, how to avoid economic exploitation, and the responsiveness to price action of the tokens. - Want more in-depth content? 1) Support us on our Patreon: www.patreon.com/economicsdesign 2) [Textbook] The Economics and Math...

In our recent research on algo stablecoins, we found some imperfections in some of their mechanisms – namely economic misalignment and failure of coupons. In this episode, we analyze and discuss the impact of such failures. - 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://boo...

How did IRON Finance crash 100% within a day? What went wrong with its mechanisms and economic design, and how is it different from FRAX, which we recently reported to be the best among 8 different stable coins? We dive into the tragedy of IRON in this episode. Timestamps: 0:00 – Intro & Contents 0:32 – Iron Finance explained 1:13 – IRON vs FRAX 2:43 – Causes of failure: Uncontrolled Supply 4:...

An algorithmic stablecoin that is not pegged to $1: How does OHM do it? What exactly are the inner workings in the OHM ecosystem and how can you take part in it? We explain in this episode! Timestamps: 0:00 – Introduction to OHM 0:58 – Classifying $OHM stablecoin 1:30 – OHM's Reserve & Algo mechanism 2:06 – No Peg Stablecoin explained 2:59 – Partial Reserve with DAI 3:30 – Zeus: What is $OHM?...

If you're Doing Your Own Research (DYOR) on stable crypto coins, this episode explains how to use quantitative and qualitative metrics to analyze them, the 3 types of risks to look at, and how Lisa & our research team applied these concepts to compare 8 different stablecoins in our research report of Apr/May 2021. The report can be downloaded for free over at econteric.com :) p.s. Thanks to Fe...

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 3:3...

In line with our recent focus on stablecoins, today we're going to explore the OG onchain stablecoin: MakerDAO. We will dive deeper into the economics of Maker, and understand how the $DAI ecosystem works. MakerDAO is a novel and innovative protocol that allows for on-chain collateralised borrowing, while also creating a reasonably effective stablecoin. This gives the crypto community an alternati...

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 to...

Alchemix $ALCX is a no-loss, yield-generating stable coin protocol with unique mechanisms that include real inflation in the ecosystem. In this episode, we speak to the co-founder of Alchemix, take a deep dive into how Alchemix functions, and the financial incentives of being part of the Alchemix system. We then discuss how it differs from other stable coins and what limitations ALCX could have. T...

FEI protocol had all of twitter talking last week.  Backed by significant VCs, this new algorithmic stablecoin mechanism, $FEI, managed to raise US$1 billion worth of Ether within the first 24 hours. And within 24 hours of launch, the price of $FEI dropped significantly, as did $TRIBE, the governance token.    So what went wrong? How did the economics model and incentive design fail...

Uniswap is an Automated Market Maker (AMM). It allows users to swap any ERC20 token, using the liquidity pool instead of the order book. Uniswap is a 100% decentralised and permissionless protocol, operating on the following formula: x*y=k (called “constant product”).    TLDR: V3 update combines both decentralised market maker model with centralised limit order books.    Follow...

Handshake (HNS) is a decentralised, permissionless naming protocol in which peers authenticate and are responsible for managing the root DNS naming zone to create an alternative to Existing naming systems and certification bodies.   Handshake is a domain name system which is support Web3. Web3 is about rearranging existing Internet products and services so that they benefit people rather than...

$EDBK, that means Economics Design Book. A very innovative name, I know.   The general idea is to:   Limit publishing rights of physical books to specific geographical regions   Price publishing rights in accordance to the perceived risks   Use the token to account for distribution of additional income   The main fear by publishing houses is to know the market demand for t...

In this episode we talk about rug pull with Emma Jane and Anna Vladi. Emma comes from an options trading background and now working on digital NFT, fashion, gaming and esports and Anna is building a new autonomous hedge fund in DeFi that is interoperable between chains and aggregates yield.    Rug pull is a big a risk in crypto. The general category of risk is Tech risk, Economic Risk an...

In this episode, we chat with Zia Word (Co-Founder of Matter Block) and Anna Vladi (Co-Founder at Metl) and talk about Women in DeFi.

NFT is not just about digital art and tokenising assets. There are so many more things we can do with NFTs, like embedding property rights, more efficient mechanism design of property rights allocation and balancing between the various types of tradeoffs. Today, we have with us Anthony Lee Zhang, assistant professor of Finance at UChicago Booth. He co-authored a paper with Glen Weyl on depreciatin...