Austin Castellaw

Algorithmic — The value and supply of algorithmic stablecoins are controlled by code. If the demand for the coin starts to increase rapidly, the protocol automatically creates more coins to bring the price down. If the value drops too low, some of the supply is burned to bring the price back up.

In this third part, I’m going to cover utility. Utility is a subsection of the Demand side of the tokenomics equation. Even if a token has a great supply model, it still needs a good reason to exist and for people to hold it. Without those, there will be no demand for it, and no one will buy or hold it.

Blockchains charge a monetary fee to the users proportional to the computational burden the nodes must verify. Thus, on this monolithic stack, the computation cost is quite high. Developers have been forced to write their code around such constraints, not being able to express the true potential of on-chain applications.

The total market cap of all stablecoins is close to $200B. This represents around 10% of the entire crypto industry. They have quickly become a critically important piece of most DeFi products. There are several ways to create a dollar-pegged token, and each strategy comes with some tradeoffs.

In Coordinape's current app distributing funds is a manual process, with Gnosis Safe and Disperse App being popular ways to use our CSVs for distribution. Soon, we will integrate our first contract element with Coordinape: the ApeVaults.ApeVaults are Ethereum mainnet vault contracts that can be minted by a DAO to hold currency or native tokens in... See more