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

05/30/22 • 113 min

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

Next Episode

Daniel & Mr Kind from Beethoven X on Fantom - Episode 1

The DeFi Sparks podcast, hosted by Nick Drakon, involves long form conversations with
the sharpest minds in DeFi.
In this inaugural episode we talk to Daniel & Mr Kind from the Beethoven X protocol on Fantom. We discuss a wide range of topics which you can see a summary of in the chapters section. Both Daniel & Mr Kind demonstrate a depth of understanding around operational excellence that is rare in the space.
Beethoven X is a leading DEX on the Fantom $FTM. Beethoven X is in partnership with the Balancer protocol on Ethereum, and uses cutting edge technology that allows for multi asset liquidity pools. This technology is a more efficient way of facilitating swaps and results in better price execution for users. They have recently announced, in partnership with Balancer, an expansion onto the Optimism blockchain.
🔗 Useful Links 🔗
Nick Drakon Twitter 👉 https://twitter.com/NickDrakon
DeFi Sparks Twitter 👉 https://twitter.com/DefiSparks
Beethoven X Video 👉 https://www.youtube.com/watch?v=P84DYOiTfIM
Beethoven X App 👉 https://beets.fi/
Beethoven X Discord 👉 https://discord.gg/beethovenx
Beethoven X Twitter 👉https://twitter.com/beethoven_x