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Nov. 7, 2021

Mission DeFi - EP 26 - Sam Kazemian of Frax wants to replace the Consumer Price Index(CPI) to make finance fair for everyone

Mission DeFi - EP 26 - Sam Kazemian of Frax wants to replace the Consumer Price Index(CPI) to make finance fair for everyone

How Frax is working to replace the CPI with a better, fairer model for an algo stablecoin that will benefit everyone. 

Guest Info

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

FPI stablecoins
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
Burns the supply

Depending on the market
Exactly
Dai using the same model
LAMM Lending AMM
#AllRoadsLeadToFrax

The emotions around having MakerDao copy explicitly how Frax works.

Other things that they've developed that others will use at other stablecoins
Uniswap v3

Regulatory
USDC USDT
Tradfi collateralized
Paper behind
No link with tradfi collateral

What are you doing from a biz dev perspective?

  • Other projects?
  • IRL

Balajis - online talk about decentralized ID
Compartmentalize them
Inflation show

Want it to be?
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

His thoughts on OHM
Reserve currency.

FPI not rebasing or bonds
Stake for more rewards in FPI
High yield stablecoin

What CPI is:
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
Talking to FEI

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
Sitting there

Ecosystem of applications in DeFi/IRL that are using it?

Big picture vision
Application in real life
Make the world a better place

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