Devcon VI

Designing Autonomous Markets for Stablecoin Monetary Policy
10-13, 15:00–15:30 (America/Bogota), Talk 4

We discuss the design of primary (i.e., minting and redemption) market mechanisms for non-custodial stablecoins. We first introduce a new analytical tool, the redemption curve, which represents the redemption price as a function of redemption pressure. We use it to discuss historical de-peggings (e.g. in DAI, UST). We then describe a new dynamic redemption curve with desirable robustness properties and show how to implement a primary market based on this curve. The system is part of Gyroscope.

Ariah is a DeFi researcher with a track record of predicting design problems in stablecoins, including the design issues in Dai that contributed to Black Thursday. He has designed and built a large part of Gyroscope, including new AMMs and stablecoin markets. He is an Applied Math PhD student at Cornell University, for which he was a Bloomberg Fellow and Commercialization Fellow. He worked previously in the financial technology sector.

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I study and design AMMs, stablecoin markets, and other cryptoeconomic systems. I've co-designed a large part of Gyroscope's core system. In my academic research, I have studied the stability of financial systems using game theory and network theory. Previously PostDoc at Goethe University. CS PhD from University of Zurich.