When a Stablecoin Becomes Core Infrastructure
summary
FraxUSD claims a concrete path to becoming core money: it backs balances with Fed reverse repos money market fund securities T-bills and FDIC-style RWAs custodied by BlackRock BNY and WisdomTree and streams the risk free rate on chain via Aave V4. A daily reserve link smart contract checks partner balances mints new FraxUSD against growing reserves and programmatically deposits yield into venues making it the highest TVL lent digital dollar on Aave V4. Forecast: stablecoin supply doubles to >$600B within a year.
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chapters (33)
- 0:00Introduction
- 0:51What the Genius Act Legalized
- 1:17Deconstructing the Parts That Matter
- 1:51The Narrow Collateral Requirements
- 2:25Why Frax Built the New Version This Way
- 2:58From Algorithmic Stablecoin to FraxUSD
- 3:48Being First to Build to the Act
- 4:31The User Journey vs a Neo Bank or Coinbase
- 5:03Why Most Venues Get No Yield From Issuers
- 5:32The Aave V4 Risk Free Rate Mechanism
- 5:58Highest TVL Digital Dollar on Aave V4
- 6:24Looking Forward, Not Winding Back the Clock
- 6:58The Aligned, Regulated, Redeemable Digital Dollar
- 7:32Why the Current Lending Rate Falls Short
- 8:38Viewing the Underlying RWAs on Frax's Website
- 9:08Which Institutions Custody the Reserves
- 9:37How the Reserve Link Smart Contract Works
- 9:59A Programmable Version of Coinbase USDC Earn
- 10:33Why Base Money Is the Biggest Network Effect
- 11:32Network Effects vs Yield Bearing Vaults
- 12:06FraxUSD as Direct Spend Across Venues
- 12:34DeFi as Financial Empowerment
- 13:10The $300 Billion vs $16 Billion Gap
- 13:39Efficiency, Alignment, and Composability
- 14:04Sustainable Infrastructure, Not a Campaign
- 14:37Not Fighting USDC on Established Pairs
- 15:03Targeting the Infrastructure of Tomorrow
- 15:37The Two Year Vision for FraxUSD Dominance
- 16:32What KPIs Frax Aligns Around
- 16:53Why Eventually There Will Just Be Dollars
- 17:59Banks and Companies Moving to Stablecoin Treasuries
- 18:51When Billion Dollar Mints Become Daily Headlines
- 19:07Closing
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