SotN#28: Uncollateralized Stablecoins w/ Dan Elitzer (ESD, BasisCash, backed by Faith & Yield!)
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Bankless
4.7 • 1.2K Ratings
🗓️ 6 January 2021
⏱️ 77 minutes
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State of the Nation #28
Algorithmic Stablecoins, with Dan Elitzer
Dan Elitzer recently co-founded Nascent (nascent.xyz), a venture capital company that is deep into 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!
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Transcript
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| 0:00.0 | Hey guys, David here. Before we get into the podcast with Dan, I just want to apologize, |
| 0:04.4 | the audio on this episode isn't so great. We had some unfortunate internet issues today. |
| 0:09.7 | Wow, I've done my best to clean up the audio and make it sound okay. And there was nothing |
| 0:15.1 | lost in the audio. Everything that was said is audible. It's just not the best audio quality. So |
| 0:21.1 | sorry for that, but it was still an Am's fire episode with Dan. Dan isn't Am's and he's |
| 0:25.3 | got me really excited about the sector of algorithmic stable. There's a ton of good |
| 0:30.5 | information podcasts. I hope. |
| 0:41.4 | Welcome everyone to state of the nation. This is a weekly podcast and videocast that David and |
| 0:47.8 | myself do, where we talk about what's happening. We relate it to the big picture stuff and we drop |
| 0:52.5 | some insights and action items. Today's topic is all about uncollateralized algorithmic |
| 0:59.6 | stablecoins. What the heck these things are. Dave and I both want to know. So we brought on our |
| 1:05.2 | friend Dan Ellitzer to tell us all about it. We will get to that shortly. David, it's good to be |
| 1:10.6 | back from the holidays, man. We're coming back and crypto is roaring my friend. How are you doing? |
| 1:15.7 | I'm doing a really good Ryan 2021 has already shaped up to be a banger year for crypto. And we |
| 1:22.2 | are just four days into it. So much has happened in the last few weeks. And I'm pretty sure that |
| 1:27.6 | trend is only going to continue into 2021. We are seeing so much innovation happening, especially in |
| 1:33.5 | the realm of algorithmic uncollateralized stablecoins. That is a brand new field that we are |
| 1:39.6 | exploring today here on the state of the nation with Dan. I have a ton of questions about how |
| 1:44.8 | these systems are built, how they're designed, how they are maintained, and how they maintain |
| 1:48.9 | peg, how they maintain security. So it really should be a really interesting conversation. And I'm |
| 1:52.8 | excited to see what happened. We're all the uncollateralized stablecoin 2021. Yeah, I have probably |
| 1:58.1 | just as many questions as most of the folks listening and watching today. So it'll be it'll |
... |
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