Stable Coin Design & Mechanics with Safe Ratios from Growth Defi - Episode 2

DeFi Sparks Podcast

Today I will be talking with "Safe Ratios" who operates the cross chain DeFi protocol called Growth Defi. They are active on Fantom $FTM, Binance Smart Chain $BSC & Avalanche $AVAX.
Growth Defi issues an over collateralized stable coin called MOR using the CDP design.They are also innovating with products and solutions that allow users to earn the benefits from locking tokens, without sacrificing liquidity in the process.
I came across his work due to the partnership Growth Defi has developed with Liquid Driver on Fantom and was extremely impressed by his depth of knowledge and the systems he has designed.
Specifically, his knowledge on stable coins intrigued me. In light of recent events on the Terra blockchain with UST collapsing, I thought it would be a good idea to have an in depth discussion on the topic of stable coin mechanics with someone who actually knows what he is talking about.
We go back to 1st principles around why stable coins exist and what problems they are trying to solve. We then dive into the different types of stable coins with a focus on the various business models of each system, in an attempt to understand how profitable these businesses are.
By understanding the flow of value we can begin to understand how risks develop and why. We diagnose the UST collapse while discussing what they were trying to do and zoom in on the signals to look for when trying to assess such systems for vulnerabilities.
We spend some time discussing the UST collapse, why it happened and what to look for in the future.
🔗 Useful Links 🔗
DeFi Sparks Podcast - https://www.defisparks.com
Nick Drakon Twitter 👉 https://twitter.com/NickDrakon
Safe Ratios Twitter 👉 https://twitter.com/SafeRatios
Growth DeFi 👉 https://mor.growthdefi.com/
Growth DeFi Twitter 👉 https://twitter.com/GrowthDefi
Video on cLQDR👉 https://youtu.be/9vbMnlEIaok

章

1. Why do we need stable coins? (00:00:00)

2. Different stable coin biz models (00:09:50)

3. Collateralised Debt Position (CDP) Design (00:18:50)

4. Maker Dao & DAI (00:20:10)

5. Is DAI really decentralised? (00:35:30)

6. Why is decentralisation important? (00:39:30)

7. DAI Emergency shutdown (00:42:30)

8. Why Algorithmic Stable Coins? (00:43:40)

9. UST & LUNA Collapse (00:58:00)

10. What's next for stable coins? (01:29:30)

11. CDP Risks & Benefits (01:37:00)

12. Final thoughts (01:46:20)