Here is what we are going to cover:A short primer on $FRAX stablecoinCollateral ratio mechanicsMinting and Redemption of $FRAXArbitrageThis is an addition to Fundamentals on Stablecoin Mechanics & Variants published earlier. These are some concepts that seem very simple but when we look from a flywheel perspective they help in questioning the value flow in the FRAX ecosystem and how everything leads to adding value to $FXS tokens.If this simple reading layout doesn’t excite you, you could scr...

Here is what we are going to cover:A short primer on $FRAX stablecoinCollateral ratio mechanicsMinting and Redemption of $FRAXArbitrageThis is an addition to Fundamentals on Stablecoin Mechanics & Variants published earlier. These are some concepts that seem very simple but when we look from a flywheel perspective they help in questioning the value flow in the FRAX ecosystem and how everything leads to adding value to $FXS tokens.If this simple reading layout doesn’t excite you, you could scr...

Here is what we are going to cover:Types of stablecoin mechanismsCollateral Debt Position (CDP)Rebase model for purely algorithmic stablecoinsSeigniorage model for purely algorithmic stablecoinsThis article provides a buildup for a fractional algorithmic stablecoin $FRAX. The information is basic and foundational to understanding the complex mechanics behind the stablecoin mechanisms and it is the first article in a series of articles dedicated to Frax Finance.If this simple reading layout do...

Here is what we are going to cover:Types of stablecoin mechanismsCollateral Debt Position (CDP)Rebase model for purely algorithmic stablecoinsSeigniorage model for purely algorithmic stablecoinsThis article provides a buildup for a fractional algorithmic stablecoin $FRAX. The information is basic and foundational to understanding the complex mechanics behind the stablecoin mechanisms and it is the first article in a series of articles dedicated to Frax Finance.If this simple reading layout do...

Here is what we are going to cover:Types of stablecoin mechanismsCollateral Debt Position (CDP)Rebase model for purely algorithmic stablecoinsSeigniorage model for purely algorithmic stablecoinsThis article provides a buildup for a fractional algorithmic stablecoin $FRAX. The information is basic and foundational to understanding the complex mechanics behind the stablecoin mechanisms and it is the first article in a series of articles dedicated to Frax Finance. A primer on MakerDAO; one of th...

Here is what we are going to cover:Types of stablecoin mechanismsCollateral Debt Position (CDP)Rebase model for purely algorithmic stablecoinsSeigniorage model for purely algorithmic stablecoinsThis article provides a buildup for a fractional algorithmic stablecoin $FRAX. The information is basic and foundational to understanding the complex mechanics behind the stablecoin mechanisms and it is the first article in a series of articles dedicated to Frax Finance. A primer on MakerDAO; one of th...

Here is what we are going to cover:The need for liquidityA basic foundation to understand how liquidity is seeded when a pool is launchedIncentivizing for liquidityUnderstanding concentrated liquidity and its implications on impermanent loss.Curve finance is referenced a lot in explaining the liquidity incentives and leveraged liquidity. The information is super basic and foundational to understanding the complex mechanics behind the protocols and it is the first article in a series of articl...

Here is what we are going to cover:The need for liquidityA basic foundation to understand how liquidity is seeded when a pool is launchedIncentivizing for liquidityUnderstanding concentrated liquidity and its implications on impermanent loss.Curve finance is referenced a lot in explaining the liquidity incentives and leveraged liquidity. The information is super basic and foundational to understanding the complex mechanics behind the protocols and it is the first article in a series of articl...

Here is what we are going to cover:A simple analogy to understand BitcoinApplying rules to that analogy to build BitcoinTechnicals behind transaction mechanics.This article provides an analogy-based approach to how bitcoin was built. The information is made extremely easy to digest.If this simple reading layout doesn’t excite you, you could scroll down to consume the same content as if it were a magazine. ⚠ Disclaimer: All information presented here is my perspective and should be considered ...

Here is what we are going to cover:A simple analogy to understand BitcoinApplying rules to that analogy to build BitcoinTechnicals behind transaction mechanics.This article provides an analogy-based approach to how bitcoin was built. The information is made extremely easy to digest.If this simple reading layout doesn’t excite you, you could scroll down to consume the same content as if it were a magazine. ⚠ Disclaimer: All information presented here is my perspective and should be considered ...

This piece explains the mechanics of an AMM with an analogy of how a trader can turn a value-less item into a value accrual asset. A comprehensive explanation of mechanics, mathematics, and the working of an automated market maker in Web 3.0, through examples and calculations.If this simple reading layout doesn’t excite you, you could scroll down to consume the same content as if it were a magazine. ⚠ Disclaimer: All information presented here is my perspective and should be considered educat...

This piece explains the mechanics of an AMM with an analogy of how a trader can turn a value-less item into a value accrual asset. A comprehensive explanation of mechanics, mathematics, and the working of an automated market maker in Web 3.0, through examples and calculations.If this simple reading layout doesn’t excite you, you could scroll down to consume the same content as if it were a magazine. ⚠ Disclaimer: All information presented here is my perspective and should be considered educat...

Here is what will be covered:Constant sum invariantConstant product invariantCreation of stable swap invariantImplications of stable swap invariantHow concentration of liquidity is integrated with the invariantA stable swap invariant is used in the pools having assets having the same value i.e. pegged assets. The information is a bit math-heavy but I am sure you would be impressed learning the implications of the invariant used by Curve V1.If this simple reading layout doesn’t excite you, you...

Here is what will be covered:Constant sum invariantConstant product invariantCreation of stable swap invariantImplications of stable swap invariantHow concentration of liquidity is integrated with the invariantA stable swap invariant is used in the pools having assets having the same value i.e. pegged assets. The information is a bit math-heavy but I am sure you would be impressed learning the implications of the invariant used by Curve V1.If this simple reading layout doesn’t excite you, you...