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

Economics 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