CESC2020: The Economics of Stablecoins Lessons from Terra

2020 Ford F150. Okay, so it's a pleasure to be here and I'll talk with you on the data. We have so many developments in so little time. So I went to Giant to jump right in and I will share some of my slides that I like some of the latest updates on the on the latest developments on. What are you close up of the economics of that rocks? And so will point out a couple of new things that haven't really experienced so far, and then they've lined up and then I will talk about the news about the technology with respect to Brooke sample, the last year and then I will dive into two

main topics that are Close to my house for the first, do I need an update on chai which is the place where we use on the, on the payment system, because that's really would provide us with a lot of data information about users and how users interact with the bathroom. And then I will, I will show you and discuss a new product, a new alliance. ER, but I think of the future are what's really. Lots of a blockchain network in the Asian Ecommerce, marketing reviews, completely the payments stock on the

blockchain and the idea is to deliver unparalleled efficiency to both merchants and partner as well as two customers. I will show you that problem is clearly able to address the issue of what I believe are. The major drawbacks of the Block Chain cryptocurrency. So far one was price for a used case, because I'm sleepy and the luxury of the board. Do you use case? So we have busy adoption of figure it out. In fact, the bracelets used as payment already across the several merchants So let me

just throw your attention to some of the mechanics are the three leads are driving the mechanism to be high in the data and sold to be a pork. Loin in contrast to other stable, consults are adjusting. The money supply seems very complicated but there is nothing more than what I've been through every day and sometimes, do we have a change in which condom? And there is zero adjustments on the supply side as we experience a shift because for example, that our modem or Merchants with adult Amino payment,

Increases the protocol issues, more Tata as the price of tie rod. The creases example, we are experiencing their don't we might finish. The downturn least, make sure of keeping the value of the constant across The other thing that I want to point out these that justifies with people calling but it is another important component of equity in the system which is Luna, ecosystem, collateral token. So we can think about this is every time a transaction with that explains a fee is directed to Luna. Transaction fee is

dynamic because it changes way the market conditions and is calibrated to ensure full collateralization so that either has a constant stream of transaction fees. The go into Luna and the decent auction fees have been awarded to those who stay in the Luna is used to gather allies during confectionery Cycle Center. Also provides another word for ability. What we believe is the meaning of value proposition and I will show you that the ending to the remind me that they agree with us. That this

is super important for both customer and Merchant. Is that the star has used on the e-commerce platforms. New money is printed to maintain price stability. As far as this, this is important because this discounts at a way for us to Booth across to use them as well as make sure that that the block Shane the news about three more efficient for the merchant. Then the next in command options, like example, of setting up a post with a credit card company,

Be in India and the Beast discount model really serves, as a way of providing the source of fiscal policy, or no stimulus for the economy. Because we have the supply of that rank resistor in the money supply, the guest room by citizen discount. The full even more in demand for Terra in the, in the future, that really bright. So, this is basically the main takeaway or how they works. And he's has been working since last year. Highlight a couple Muse with respect to what

has been going on in the, in the last few months about the technology, the first one is being decoration of smart contracts. In the in the training but he's going to be. So important thing about me, is my contract says that they can be run on multiple change. Making use of the interlocking. She said they are secure with most of the known attack Vector Solitaire. Been evidenced by a pyramid close by the time and the power and the algorithm Julissa. And so this is sort of

the first technological step that opens up the possibility for developers to come in and be done. We also gotta move the one step forward towards decentralisation. So just a few weeks ago that off for alarm system down the continue to contribute toward the greater, the centralization not in the system to wear motor motor decentralized in his career. No one more thing at a time, like this, that the from the speed out, the $820,000 to validate in the network in real non-dilutive to work. So just to give you a sense of the growth rate of these were

so the words sometimes when I grew over the 58 weeks, since the lunch at an average rate of 17%, What's the total, even the thought that is extremely high. In fact that this brings the total paid outs Network, rewards, 2 /, 3.3 million. Just to give you a sense of how we compared with respect to whatever else in the market. We are just number three soluna, which is better than nothing. OK. Google Adjust number 3, after Bitcoin, the end it with more than

a dream house for a million dollars. Paid out to validator. Okay, if I don't ship the gear a little bit and start showing you what has been happening in July. So first of all, users averaged 21.6 million users with 1 billion annual run rate. And more importantly, you know why one every dance that has been extremely successful in terms of holding you and your user? So what time they are number, is number one, Adam solve the growth rate and the comparison between total users and active users. What we planted it here in just the last, the quarter

was 3 months from April to mid-june and we have this little users to go in from 1.3 to 1.6. So we're basically a drink and Raquel's on users and also be active users increased significantly increasing the overtime so this is just to Tampa is a payment that they'll be excited about the Tesla. But we also seen an increasing number of integration and overall volume and then we are good. For the merchant service time, reaching the 24 billion dollars. So we're just in the last couple of quarters, we added the few of the most important, the

Martians. For example, we are, did we make rice with cheese? Korea's number to converse platform, they just have, you know, over five billion dollars in volume. We also added the greatest number one Hospital in the ground. The two billion dollars selling online volume in more than two million users and more than 400,000. Tell you just to give you a sense of a quarter of the overall. What is that considered a significant portion of the overall repayments? And these are actually the evidence that the new users that we are currently active.

In fact, we are adding more and more active users. So if we are looking at from the lunch today, we're talking about almost a hundred thousand active users. No one big question about the acquisition of these users is how expensive these users as big for us? And so one thing we can do is actually looking into the economics of aquatic motor motor. Customer service for try and buy one of them for my position. Is the promotion for 8 that we have to offer this customers to be

to be able to listen to meet them to use to try and make sure we're plotting. These transfer proteins will Botox line is the transaction volume, print, and the gray dash line is the promotion, right front. What we see is basically that the correlation between these two is, the volume has been increasing, their significantly, especially in the last few months were to observe here is the promotion rate. It's so this means that all the night. Drafted that showed you before in terms of the dolphin active users

in the last few months is great. Not only because we have more and more people using the tribe at each, one of them cost. If you were also formally, look at the correlation between the weekly promotion rate and the transaction volume and being in a rice being, as high as 24% in August specials, at the beginning, when we were trying to attract a skunk as many customers possible, but now is actually lower than it's less than 15 disease or somebody. That shouldn't of the fact that you are becoming more and more profitable

as we are, the users Coastal Flats. in fact, overall, if you look at the not only the promotion, right, but overall customer acquisition cost that the customer acquisition cost has been trending down significantly since the beginning of customers over the last few months, which is one more thing I want to show you the ways that since we have the opportunity to actually look at how users to integrate across different Merchants. We are so going to use this information to actually understand a little bit more about you spending pattern of this. And what we see is that the

only active across multiple Merchants are also the ones that for which we have 12 lower, be storms begin with so that you can wear a parking Bay City. Discount spending the first transaction over the number of merchants users use it against me. Basically if I use just one Merchant is probably because I'm responding to a particular and significant other offer. As soon as I start using too much discomfort, it's dropped dramatically and the beastly go lower and lower as I become a Bora Bora

I like the fact that the reason need the end result of value in the proclamation of users across the different version because once they get used to use the same platform across across the merchants baby, so better uses for us and the good news is that starting in the fall of 2019, the share of customers to use multiple merchandise, being a sky of it. So now I'm more than twenty-five to thirty percent of the same time. So this is good for the discount for every transaction

discussed for the basically are experiencing Lord Viscount. What they used to try across multiple Martian In particular, one other thing that is very different across cultures. Once we compared to how they behave across different Merchant, is that to the ones that use only one. Merchants are, also the ones who thought of the toughest 50% to 1 months detention for the ones that use multiple merchants. In fact, the one to use more than three Merchants. You are a great job of 80%. No. One more thing that they want to show you

is that if you look at the retention rate across cohort to how they look. Now, the customers that we acquired in the very beginning, they compared to the customer's request by over the next few months that Steve mentioned r1850db cuz it goes from 60 to 70%. So that's also good in the sense that a dishwasher has let the customers that we're recording right now. They're not the worst customers than the ones that you acquire the beginning of the most enthusiastic and there are easier to retain but the

differential is not the stores. The other thing that I want to mention is that the now we allow for the box to the possibility, basically, put money into your account and there are more and more customers to do list. So they're not just one transaction, but they basically use the account significantly more and it's October time. We have nowadays, we're over 500,000 customers that used to box. We actually put money into their account. No, this was basically an overview of

what's going. What's going on with the try? I want to mention one more thing, which is the new alliance and what's that means? In terms of rock sample, the next products are being formed a new Entertainer set Association. This is a collaborative effort to create similar between Orthodox, and they want to create new applications and also educated on the new monitor. Triple steak. And so these are set association with provides to the shipper of the technical projects and stop there and we promote the adoption of interchange Technologies and for the weather for all standard process.

One product that will be announced the very very soon is Amcor disease and to be the gold standard for passive income on the blockchain. Is out there you are. I will look like probably 4 and I want to mention what it is and how that works. But before doing that limit, just pause for a second and state which we believe are the weaknesses of the current to defy the central life science assistant, by the way. So why Define defy everything revolution in creating a fully decentralized, the crypto money market

interest rates have been. I've been busy. The big obstacle to be used to, as to make these money markets. Be used as an ounce of living product. What we believe is that the Define masseduction need the creation of a fully centralized saving account offers and dependable and stable, APR What is anchor? Anchor is exactly a V5 protocol. The leverages the block reward of every major blockchain to power, the heels on stablecoin deposit. Let me let me know how this actually works.

In low volatility interest, rate for sake assets to major, blockchains as collateral to be us, are basically the same as the you say, baccarat Forge, bowling can be traded by passing only, bearable fraction of the BS at the field. Do the deposit guarantee the principal of the deposit by liquidating borrowers collateral via liquidation, contracts, and field party. So if this reminds you of something smarter than you are a silly Bank, depositors who come in and deposits, are there be acid and you have borders & borders and in the middle you have

an interest rate and make sure that the the collateral is enough in order to sustain interest rate at this table across cycles. And so we believe that the provision of these stable interest rate at the future of any savings products that actually build up in Maine limitation of the existing product to the been out there like compound. And the maker has been the highly cyclical nature of the nature of the deposit interest rates. Global automobile. Anchor is enough time to give in the main street in Wester, a single

reliable rate of return across all blockchain and the pleasure of speaking products each weighed wedding terms and he'll make a refi, very confusing. Next Festival in an appealing to the gym instead anchored, by aggregating is block rewards from all. The major blockchain is able to offer, what we believe will be a benchmark interest rate. Just so that there's at the VA in everything is clear. In terms of how this works. Simple email is supposed to be getting an interest rate

and I'm a programmer second, burrowing from boring. And the makers make sure that the ones that are borrowing your foot down and to make sure that the interest rate that the ankle can offer to deposit money stable over time. So the party or the interest rate is determined algorithmically, you know, sexy very similar In The Same Spirit as the algorithm. That the proposed amount of the policy and easy, really function of the boring, demand-and-supply, what we called utilization ratio,

which is the fraction of Petra in the pool at it as being bought and sold the interest rate, will adjust automatically know, they're to meet the demand and supply and make sure that your finger is stable. Why we believe this is superior, is I say the basically he needs another defy. Protocols are mainly driven by short-term disability with demands for the underlined token. And we believe this is an extremely be stable ER with collapsed. And we will bring down the old the demand for these products

in the first place. Why the fact that the ankle healed is powered, by blogger words, by the entire universe of the chain, Jesus allows us to be Multiverse defied. And I've also of Elmo Dependable, APR No let me conclude since I am out of time. Overall we think that you know cryptocurrency adoption is being measured with the Heisman in changing your post as it has been with the organization. I think Tara is going to pass to production VI and we expect to see many more

applications to contribute to Telegraph. Let me mention we recently or so published in our business review article about the future of staple coin. And what's that? My clientele for the khmers together with Nicholas up like a Swiss be at the research, at where we actually take a broader view of what's happening in the markets in which is likely to occur in the near future with the introduction of Steamboat Co ensure and the e-commerce overall. I think a lot of exciting news and stay tuned Thank you.