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