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Podcast

SotN #28: Uncollateralized Stablecoins | Dan Elizter

ESD, BasisCash, and how algo coins are backed by faith and yield!
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Jan 7, 2021 • 1 min read

Dan Elitzer recently co-founded Nascent (nascent.xyz), a venture capital firm that is deep in the weeds in some of the most experimental projects in the Ethereum ecosystem.

In the 2nd half of 2020, some of the coolest experimental projects have been Algorithmic, Uncollateralized Stablecoins.

These are stablecoins without dollars in a bank, or without crypto in a vault. They are completely backed by financial incentives.... and faith in those incentives.

In this episode of State of the Nation, we begin by defining the 'Stablecoin Trilemma' (https://imgur.com/a/Uj0HBL3), and discuss some of the history of stablecoins.

Then we turn to the current design philosophy behind algorithmic stablecoins, how they work, what makes them stable, and who gets the upside?

We largely discuss Empty Set Dollar (ESD, https://www.emptyset.finance/), but also discuss Basis Cash, and Ampleforth.

Tune in, to hear about this exciting emerging corner of the DeFi ecosystem!

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Published in Bankless

There’s a revolution in the world of money. Ethereum, Bitcoin, crypto, open finance, DeFi—a bankless revolution. And you want part of it.

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