How Frax is working to replace the CPI with a better, fairer model for an algo stablecoin that will benefit everyone.
Name of Guest: Sam Kazemian
Name of Project: Frax Finance
Twitter URL of Guest: https://twitter.com/samkazemian
Project Twitter URL: https://twitter.com/FraxFinance
Project URL: https://frax.finance/
Previous Episode with Sam: https://bit.ly/3DeDPxZ
Show Notes
600 million Frax in circulation and growing 10s of millions weekly
FPI ships in late November/early december
Frax dollar pegged stablecoin
FPI CPI plus inflation factor.
How the Frax Price Index works.
Treasury system and high yielding stablecoin system
Similar to OHM, but no bonds
No bonds = partner with Olympus
FXS governance vfxs Frax FXS airdrop
Frax stablecoin algo fractional
Targets the exchange rate of coins out in the open market
Frax expands or contracts in different protocols
Curve LP tokens earning a yields
Frax supply needs to contract
Exactly
Dai using the same model
LAMM Lending AMM
The emotions around having MakerDao copy explicitly how Frax works.
Other things that they've developed that others will use at other stablecoins
USDC USDT
Tradfi collateralized
Paper behind
No link with tradfi collateral
What are you doing from a biz dev perspective?
Other projects?
IRLBalajis - online talk about decentralized ID
Compartmentalize them
What keeps you up at night about FRAX?
FPI is the 2nd stablecoin in Frax
Why not fractional Euros, etc?
Bitcoin/Ethereum sized play
Originally had thought Frax might decouple
FPI not rebasing or bonds
Stake for more rewards in FPI
2 types of food
% of what is spent on each
index doubles it the next month
Dollar is supposed to track the exchange of those items is supposed to lose 2.5% per year.
The dollar should track the CPI
Why not create that in a crypto native system
Bring the CPI on chain.
Chainlink CPI once per month
How the inflationary aspects of the CPI are both good and bad.
Creates growth, but hyper consumer society, so harms lower income members of society.
FPI uses an onchain version of the CPI oracle for Chainlink and that will drive part of the algorithm for
Do you think we will improve upon that?
Stablecoin algo adjusted in supply to track this oracle.
The best currency is the one that keeps it constant
Flat coin
Increase your standard of living.
Constant purchasing power.
Relationship between Frax/FPI
Joey Santorum from FEI on the show
What has to happen for FPI to get to 1 trillion?
Slow and boring
People won't notice or care
Ecosystem of applications in DeFi/IRL that are using it?
Application in real life
Make the world a better place