Stablecoin Ii: Economics Design For Stablecoin Systems

Designing Robust Stablecoin Systems with Asset-Liability Management Concepts.

What you'll learn
Why do some Stablecoins fail and others do not?
Understanding Stablecoin systems from an Asset-Liability Management perspective
Asset-Liability Management Process and Tools
Internal economics of Stablecoins.
Role of collateral and reserve in stablecoin systems.
The failure mode for various stablecoins
Stablecoin Bank-runs
Requirements
Some basic understanding of accounting and finance concepts will be helpful
Description
The collapse of TerraUSD and with that the whole Terra ecosystem comprising Luna Coins and Anchor protocol is a watershed moment in the history of digital assets. This can accelerate regulations in the sector and can significantly slow down the development of private digital assets. On 9th May 2022, TerraUSD or UST the USD pegged Stablecoin the Terra ecosystem lost its peg..its price deviated significantly from 1 USD and the slide continued for next few days - the price fell to less than half a penny…the depeg of TerraUSD caused a sell-off of the sister coin LUNA too. A market cap of more than  40 billion USD was erased between TerraUSD and Luna Coins in just a few days. Apart from that other digital assets on the Terra platforms such as TerraKRW, Anchor Protocol, and Mirror Protocol assets …additional hundred of millions of dollars were lost if not billions more. Now, there are two ways to react to it - either we can say that all stablecoins or even all crypto assets are worthless or try to understand why TerraUSD and some other stablecoins failed.Just want to point out that even in this market turmoil many other stablecoins remained stable. That includes centralized fiat-backed stablecoins such as USDC and USDT and crypto collateralized decentralized stablecoins DAI. Even sUSD i.e. Synthetix USD on the Synthetix platform seems to gain stability after negligible volatility.We should also note that TerraUSD is not the first stablecoin to fail. So, why did some Stablecoins fail and others survived. This course will hopefully help you understand why stablecoins fail and how robust stablecoins systems can be developed using concepts of Asset-Liability Management.This is my second course on Stablecoins. The first course covers the basics of stablecoins. This course is an intermediate-level course that delves into more intricate concepts. For sake of completeness, this course includes some basic concepts on Stablecoins too.

Overview

Section 1: Introduction

Lecture 1 Introduction

Lecture 2 Who is this course for?

Lecture 3 Course Outline

Section 2: Why do Stablecoins fail?

Lecture 4 TerraUSD Failure

Lecture 5 Basis Cash Failure

Lecture 6 Empty Set Dollar Failure

Lecture 7 Iron Stablecoin Failure

Lecture 8 FEI Depeg

Section 3: Stablecoins that survived

Lecture 9 Fiat-Backed Stablecoins

Lecture 10 Crypto-backed Stablecoins

Lecture 11 Algorithmic Stablecoins

Section 4: Basics of Stablecoins

Lecture 12 What is a Stablecoin?

Lecture 13 Different Types of Stablecoins

Lecture 14 Arbitrage Based Price Stabilization

Lecture 15 Algorithmic Price Stabilization

Section 5: Understanding Asset-Liability Management

Lecture 16 What is Asset-Liability Management?

Lecture 17 Levels of Complexity in ALM

Lecture 18 Tools used in ALM

Section 6: Stablecoins as Financial Institutions

Lecture 19 Intro

Lecture 20 Fiat-Backed stablecoins

Lecture 21 Crypto-Backed Stablecoins

Lecture 22 Algorithmic Stablecoins

Lecture 23 Role of Collateral and Reserve

Section 7: Stablecoins Failures from point of view of ALM

Lecture 24 Looking back at TerraUSD

Lecture 25 Causes of Stablecoin failures from the POV of ALM

Section 8: Use of ALM Tools in Stablecoin Design

Lecture 26 Use of ALM Tools in Stablecoin Design

Section 9: Comparison of Stablecoin Systems

Lecture 27 Tether USD (USDT)

Lecture 28 USDC

Lecture 29 DAI

Lecture 30 TerraUSD

Lecture 31 CELO Dollar

Lecture 32 FEI

Lecture 33 AMPL

Lecture 34 Summary

Lecture 35 BAC & ESD - Death Spiral

Section 10: Designing Robust Stablecoin Systems

Lecture 36 Designing Robust Stablecoin Systems

Section 11: Thank you

Lecture 37 Thank you

This course is suitable for techies and analysts who want to build and analyze stablecoins systems.