WEBVTT Kind: captions Language: en 00:00:00.000 --> 00:00:04.350 align:start position:0% foreign 00:00:04.350 --> 00:00:04.360 align:start position:0% 00:00:04.360 --> 00:00:13.690 align:start position:0% [Music] 00:00:13.690 --> 00:00:13.700 align:start position:0% 00:00:13.700 --> 00:00:16.970 align:start position:0% and<00:00:14.700> today<00:00:14.880> I<00:00:15.120> want<00:00:15.179> to<00:00:15.360> talk<00:00:15.480> about<00:00:15.859> some<00:00:16.859> of 00:00:16.970 --> 00:00:16.980 align:start position:0% and today I want to talk about some of 00:00:16.980 --> 00:00:18.590 align:start position:0% and today I want to talk about some of the<00:00:17.100> design<00:00:17.279> work<00:00:17.580> we<00:00:17.880> did<00:00:18.000> for<00:00:18.180> our<00:00:18.300> stable 00:00:18.590 --> 00:00:18.600 align:start position:0% the design work we did for our stable 00:00:18.600 --> 00:00:21.950 align:start position:0% the design work we did for our stable coin<00:00:19.020> that's<00:00:19.500> called<00:00:19.740> gyroscope<00:00:20.779> and<00:00:21.779> there's 00:00:21.950 --> 00:00:21.960 align:start position:0% coin that's called gyroscope and there's 00:00:21.960 --> 00:00:23.450 align:start position:0% coin that's called gyroscope and there's a<00:00:22.080> joint<00:00:22.320> work<00:00:22.439> with<00:00:22.619> my<00:00:22.740> co-founder<00:00:23.100> Arya 00:00:23.450 --> 00:00:23.460 align:start position:0% a joint work with my co-founder Arya 00:00:23.460 --> 00:00:24.710 align:start position:0% a joint work with my co-founder Arya clagasmond 00:00:24.710 --> 00:00:24.720 align:start position:0% clagasmond 00:00:24.720 --> 00:00:27.109 align:start position:0% clagasmond so<00:00:25.320> imagine<00:00:26.160> you<00:00:26.400> want<00:00:26.519> to<00:00:26.640> build<00:00:26.699> a<00:00:26.880> stable 00:00:27.109 --> 00:00:27.119 align:start position:0% so imagine you want to build a stable 00:00:27.119 --> 00:00:28.250 align:start position:0% so imagine you want to build a stable coin 00:00:28.250 --> 00:00:28.260 align:start position:0% coin 00:00:28.260 --> 00:00:30.290 align:start position:0% coin so<00:00:28.680> you<00:00:28.859> have<00:00:29.039> a<00:00:29.279> you<00:00:29.519> have<00:00:29.699> a<00:00:29.760> cryptocurrency 00:00:30.290 --> 00:00:30.300 align:start position:0% so you have a you have a cryptocurrency 00:00:30.300 --> 00:00:32.269 align:start position:0% so you have a you have a cryptocurrency and<00:00:30.480> you<00:00:30.599> want<00:00:30.720> to<00:00:30.779> keep<00:00:30.840> it<00:00:30.960> stable<00:00:31.260> and<00:00:32.040> in 00:00:32.269 --> 00:00:32.279 align:start position:0% and you want to keep it stable and in 00:00:32.279 --> 00:00:33.350 align:start position:0% and you want to keep it stable and in some<00:00:32.399> senses<00:00:32.640> it's<00:00:32.820> always<00:00:33.000> going<00:00:33.180> to<00:00:33.239> look 00:00:33.350 --> 00:00:33.360 align:start position:0% some senses it's always going to look 00:00:33.360 --> 00:00:35.630 align:start position:0% some senses it's always going to look like<00:00:33.540> this<00:00:33.719> you<00:00:34.079> have<00:00:34.260> some<00:00:34.980> kind<00:00:35.100> of<00:00:35.280> reserve 00:00:35.630 --> 00:00:35.640 align:start position:0% like this you have some kind of reserve 00:00:35.640 --> 00:00:36.650 align:start position:0% like this you have some kind of reserve of<00:00:35.760> assets 00:00:36.650 --> 00:00:36.660 align:start position:0% of assets 00:00:36.660 --> 00:00:38.930 align:start position:0% of assets and<00:00:37.380> then<00:00:37.620> people<00:00:37.980> can<00:00:38.219> mint<00:00:38.460> and<00:00:38.640> redeem 00:00:38.930 --> 00:00:38.940 align:start position:0% and then people can mint and redeem 00:00:38.940 --> 00:00:42.530 align:start position:0% and then people can mint and redeem coins<00:00:39.540> against<00:00:40.440> that<00:00:40.860> assets 00:00:42.530 --> 00:00:42.540 align:start position:0% coins against that assets 00:00:42.540 --> 00:00:43.850 align:start position:0% coins against that assets um and<00:00:42.899> that's<00:00:43.020> going<00:00:43.200> to<00:00:43.320> stabilize<00:00:43.680> the 00:00:43.850 --> 00:00:43.860 align:start position:0% um and that's going to stabilize the 00:00:43.860 --> 00:00:45.170 align:start position:0% um and that's going to stabilize the price<00:00:43.980> right<00:00:44.219> if<00:00:44.399> the<00:00:44.579> price<00:00:44.700> is<00:00:44.820> too<00:00:45.000> high 00:00:45.170 --> 00:00:45.180 align:start position:0% price right if the price is too high 00:00:45.180 --> 00:00:46.610 align:start position:0% price right if the price is too high they<00:00:45.540> can 00:00:46.610 --> 00:00:46.620 align:start position:0% they can 00:00:46.620 --> 00:00:48.290 align:start position:0% they can um<00:00:46.680> they<00:00:47.040> can<00:00:47.100> meet<00:00:47.340> new<00:00:47.520> coins<00:00:47.820> if<00:00:48.000> the<00:00:48.180> price 00:00:48.290 --> 00:00:48.300 align:start position:0% um they can meet new coins if the price 00:00:48.300 --> 00:00:50.150 align:start position:0% um they can meet new coins if the price is<00:00:48.420> too<00:00:48.600> low<00:00:48.719> they<00:00:48.899> can<00:00:49.079> redeem<00:00:49.320> coins<00:00:49.680> it's 00:00:50.150 --> 00:00:50.160 align:start position:0% is too low they can redeem coins it's 00:00:50.160 --> 00:00:52.369 align:start position:0% is too low they can redeem coins it's going<00:00:50.340> to<00:00:50.460> stabilize<00:00:50.700> the<00:00:50.879> market<00:00:51.000> price 00:00:52.369 --> 00:00:52.379 align:start position:0% going to stabilize the market price 00:00:52.379 --> 00:00:53.810 align:start position:0% going to stabilize the market price um<00:00:52.440> and<00:00:52.680> we<00:00:52.800> call<00:00:52.980> the<00:00:53.219> primary<00:00:53.579> Market 00:00:53.810 --> 00:00:53.820 align:start position:0% um and we call the primary Market 00:00:53.820 --> 00:00:57.229 align:start position:0% um and we call the primary Market mechanism<00:00:54.920> excuse<00:00:55.920> me<00:00:56.100> the<00:00:56.760> primary<00:00:57.059> Market 00:00:57.229 --> 00:00:57.239 align:start position:0% mechanism excuse me the primary Market 00:00:57.239 --> 00:00:59.630 align:start position:0% mechanism excuse me the primary Market mechanism<00:00:57.719> the<00:00:58.320> thing<00:00:58.500> that<00:00:58.860> grants<00:00:59.399> access 00:00:59.630 --> 00:00:59.640 align:start position:0% mechanism the thing that grants access 00:00:59.640 --> 00:01:02.569 align:start position:0% mechanism the thing that grants access to<00:01:00.180> these<00:01:00.600> assets<00:01:00.899> and<00:01:01.140> that<00:01:01.579> intermediates 00:01:02.569 --> 00:01:02.579 align:start position:0% to these assets and that intermediates 00:01:02.579 --> 00:01:03.549 align:start position:0% to these assets and that intermediates between 00:01:03.549 --> 00:01:03.559 align:start position:0% between 00:01:03.559 --> 00:01:05.450 align:start position:0% between mintus<00:01:04.559> and<00:01:04.619> redeemers<00:01:05.040> which<00:01:05.159> are<00:01:05.280> basically 00:01:05.450 --> 00:01:05.460 align:start position:0% mintus and redeemers which are basically 00:01:05.460 --> 00:01:08.990 align:start position:0% mintus and redeemers which are basically Upchurch<00:01:05.939> and<00:01:06.479> the<00:01:06.600> asset<00:01:07.080> Reserve 00:01:08.990 --> 00:01:09.000 align:start position:0% Upchurch and the asset Reserve 00:01:09.000 --> 00:01:10.429 align:start position:0% Upchurch and the asset Reserve um<00:01:09.060> now<00:01:09.360> what<00:01:09.540> are<00:01:09.720> these<00:01:09.840> assets<00:01:10.080> well<00:01:10.260> that 00:01:10.429 --> 00:01:10.439 align:start position:0% um now what are these assets well that 00:01:10.439 --> 00:01:11.990 align:start position:0% um now what are these assets well that depends<00:01:10.680> on<00:01:10.740> your<00:01:10.920> design 00:01:11.990 --> 00:01:12.000 align:start position:0% depends on your design 00:01:12.000 --> 00:01:14.149 align:start position:0% depends on your design um<00:01:12.060> it<00:01:12.479> could<00:01:12.600> be<00:01:12.720> many<00:01:12.960> different<00:01:13.140> things<00:01:13.439> in 00:01:14.149 --> 00:01:14.159 align:start position:0% um it could be many different things in 00:01:14.159 --> 00:01:16.850 align:start position:0% um it could be many different things in a<00:01:14.340> sanyaraj<00:01:15.000> shared<00:01:15.960> design 00:01:16.850 --> 00:01:16.860 align:start position:0% a sanyaraj shared design 00:01:16.860 --> 00:01:19.370 align:start position:0% a sanyaraj shared design it<00:01:17.820> could<00:01:18.000> be<00:01:18.180> it's<00:01:18.600> basically<00:01:18.900> an<00:01:19.080> equity 00:01:19.370 --> 00:01:19.380 align:start position:0% it could be it's basically an equity 00:01:19.380 --> 00:01:20.950 align:start position:0% it could be it's basically an equity share<00:01:19.680> in<00:01:20.040> a<00:01:20.100> sense 00:01:20.950 --> 00:01:20.960 align:start position:0% share in a sense 00:01:20.960 --> 00:01:23.390 align:start position:0% share in a sense for<00:01:21.960> something<00:01:22.200> like<00:01:22.380> a<00:01:22.500> basis<00:01:22.799> design<00:01:23.040> it's 00:01:23.390 --> 00:01:23.400 align:start position:0% for something like a basis design it's 00:01:23.400 --> 00:01:25.850 align:start position:0% for something like a basis design it's something<00:01:23.640> like<00:01:23.820> a<00:01:24.000> bond<00:01:24.320> and<00:01:25.320> in<00:01:25.500> a<00:01:25.619> reserve 00:01:25.850 --> 00:01:25.860 align:start position:0% something like a bond and in a reserve 00:01:25.860 --> 00:01:27.230 align:start position:0% something like a bond and in a reserve back<00:01:25.979> design<00:01:26.159> at<00:01:26.400> some<00:01:26.520> portfolio<00:01:26.939> of<00:01:27.119> other 00:01:27.230 --> 00:01:27.240 align:start position:0% back design at some portfolio of other 00:01:27.240 --> 00:01:28.730 align:start position:0% back design at some portfolio of other assets<00:01:27.600> and<00:01:27.840> by<00:01:27.960> the<00:01:28.080> way<00:01:28.140> this<00:01:28.320> is<00:01:28.439> a<00:01:28.560> design 00:01:28.730 --> 00:01:28.740 align:start position:0% assets and by the way this is a design 00:01:28.740 --> 00:01:30.950 align:start position:0% assets and by the way this is a design we<00:01:29.040> are<00:01:29.159> using<00:01:29.400> for<00:01:29.580> gyroscope<00:01:30.240> it's<00:01:30.420> reserved 00:01:30.950 --> 00:01:30.960 align:start position:0% we are using for gyroscope it's reserved 00:01:30.960 --> 00:01:32.749 align:start position:0% we are using for gyroscope it's reserved backed 00:01:32.749 --> 00:01:32.759 align:start position:0% backed 00:01:32.759 --> 00:01:33.710 align:start position:0% backed um 00:01:33.710 --> 00:01:33.720 align:start position:0% um 00:01:33.720 --> 00:01:36.109 align:start position:0% um now<00:01:34.380> there<00:01:34.680> are<00:01:34.860> different<00:01:35.040> situations<00:01:35.880> we 00:01:36.109 --> 00:01:36.119 align:start position:0% now there are different situations we 00:01:36.119 --> 00:01:37.249 align:start position:0% now there are different situations we need<00:01:36.240> to<00:01:36.360> look<00:01:36.420> at 00:01:37.249 --> 00:01:37.259 align:start position:0% need to look at 00:01:37.259 --> 00:01:39.530 align:start position:0% need to look at um the<00:01:38.100> kind<00:01:38.280> of<00:01:38.340> boring<00:01:38.640> case<00:01:38.880> is<00:01:39.180> when<00:01:39.360> the 00:01:39.530 --> 00:01:39.540 align:start position:0% um the kind of boring case is when the 00:01:39.540 --> 00:01:40.910 align:start position:0% um the kind of boring case is when the system<00:01:39.659> is<00:01:39.900> fully<00:01:40.140> collateralized<00:01:40.619> and<00:01:40.740> all 00:01:40.910 --> 00:01:40.920 align:start position:0% system is fully collateralized and all 00:01:40.920 --> 00:01:43.130 align:start position:0% system is fully collateralized and all the<00:01:41.040> assets<00:01:41.280> are<00:01:41.400> perfectly<00:01:41.700> liquid<00:01:42.140> because 00:01:43.130 --> 00:01:43.140 align:start position:0% the assets are perfectly liquid because 00:01:43.140 --> 00:01:46.310 align:start position:0% the assets are perfectly liquid because then<00:01:43.979> this<00:01:44.640> is<00:01:44.939> just<00:01:45.299> basically<00:01:45.840> a<00:01:46.020> pricing 00:01:46.310 --> 00:01:46.320 align:start position:0% then this is just basically a pricing 00:01:46.320 --> 00:01:49.429 align:start position:0% then this is just basically a pricing problem<00:01:46.560> price<00:01:47.100> the<00:01:47.280> reserve<00:01:47.640> assets 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these assets might be 00:01:57.119 --> 00:01:58.789 align:start position:0% but not all of these assets might be liquid<00:01:57.420> so<00:01:57.600> you<00:01:57.780> cannot<00:01:58.079> necessarily<00:01:58.500> pay 00:01:58.789 --> 00:01:58.799 align:start position:0% liquid so you cannot necessarily pay 00:01:58.799 --> 00:02:01.370 align:start position:0% liquid so you cannot necessarily pay them<00:01:58.979> out<00:01:59.159> when<00:01:59.399> people<00:01:59.520> redeem 00:02:01.370 --> 00:02:01.380 align:start position:0% them out when people redeem 00:02:01.380 --> 00:02:04.429 align:start position:0% them out when people redeem um<00:02:01.579> and<00:02:02.579> then<00:02:03.180> there's<00:02:03.420> the<00:02:03.659> crisis<00:02:04.020> situation 00:02:04.429 --> 00:02:04.439 align:start position:0% um and then there's the crisis situation 00:02:04.439 --> 00:02:05.870 align:start position:0% um and then there's the crisis situation where<00:02:04.680> the<00:02:04.799> system<00:02:04.979> actually<00:02:05.280> becomes<00:02:05.700> under 00:02:05.870 --> 00:02:05.880 align:start position:0% where the system actually becomes under 00:02:05.880 --> 00:02:07.190 align:start position:0% where the system actually becomes under collateralized<00:02:06.479> and<00:02:06.659> then<00:02:06.840> you<00:02:06.960> need<00:02:07.079> to 00:02:07.190 --> 00:02:07.200 align:start position:0% collateralized and then you need to 00:02:07.200 --> 00:02:10.249 align:start position:0% collateralized and then you need to decide<00:02:07.619> what<00:02:08.160> to<00:02:08.340> do<00:02:08.520> and<00:02:09.300> my<00:02:09.780> talk<00:02:09.899> is<00:02:10.080> going 00:02:10.249 --> 00:02:10.259 align:start position:0% decide what to do and my talk is going 00:02:10.259 --> 00:02:12.410 align:start position:0% decide what to do and my talk is going to<00:02:10.380> be<00:02:10.440> about<00:02:10.619> the<00:02:11.039> design<00:02:11.220> of<00:02:11.640> this<00:02:12.000> component 00:02:12.410 --> 00:02:12.420 align:start position:0% to be about the design of this component 00:02:12.420 --> 00:02:14.330 align:start position:0% to be about the design of this component that<00:02:12.720> basically<00:02:12.959> designs<00:02:13.440> what<00:02:13.620> to<00:02:13.800> do<00:02:13.920> in 00:02:14.330 --> 00:02:14.340 align:start position:0% that basically designs what to do in 00:02:14.340 --> 00:02:16.250 align:start position:0% that basically designs what to do in such<00:02:14.520> a<00:02:14.640> situation 00:02:16.250 --> 00:02:16.260 align:start position:0% such a situation 00:02:16.260 --> 00:02:17.270 align:start position:0% such a situation um 00:02:17.270 --> 00:02:17.280 align:start position:0% um 00:02:17.280 --> 00:02:19.250 align:start position:0% um what<00:02:17.760> we<00:02:17.940> are<00:02:18.180> implementing<00:02:18.540> for<00:02:18.660> gyroscope 00:02:19.250 --> 00:02:19.260 align:start position:0% what we are implementing for gyroscope 00:02:19.260 --> 00:02:22.190 align:start position:0% what we are implementing for gyroscope is<00:02:19.500> a<00:02:19.620> reserve<00:02:19.920> of<00:02:20.040> only<00:02:20.400> liquid<00:02:20.819> assets<00:02:21.599> so<00:02:22.080> we 00:02:22.190 --> 00:02:22.200 align:start position:0% is a reserve of only liquid assets so we 00:02:22.200 --> 00:02:24.110 align:start position:0% is a reserve of only liquid assets so we are<00:02:22.379> not<00:02:22.500> really<00:02:22.560> considering<00:02:23.040> this<00:02:23.280> case<00:02:23.520> but 00:02:24.110 --> 00:02:24.120 align:start position:0% are not really considering this case but 00:02:24.120 --> 00:02:26.990 align:start position:0% are not really considering this case but it<00:02:24.300> would<00:02:24.540> be<00:02:24.780> a<00:02:25.520> maybe<00:02:26.520> straightforward 00:02:26.990 --> 00:02:27.000 align:start position:0% it would be a maybe straightforward 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plexibility 00:02:37.309 --> 00:02:37.319 align:start position:0% you have the PSM or plexibility 00:02:37.319 --> 00:02:39.350 align:start position:0% you have the PSM or plexibility mechanism<00:02:37.800> and<00:02:38.520> it<00:02:38.700> basically<00:02:39.000> looks<00:02:39.300> like 00:02:39.350 --> 00:02:39.360 align:start position:0% mechanism and it basically looks like 00:02:39.360 --> 00:02:42.410 align:start position:0% mechanism and it basically looks like this<00:02:39.540> that<00:02:39.900> your<00:02:40.140> reserve<00:02:41.120> almost<00:02:42.120> only 00:02:42.410 --> 00:02:42.420 align:start position:0% this that your reserve almost only 00:02:42.420 --> 00:02:44.449 align:start position:0% this that your reserve almost only consists<00:02:42.780> of<00:02:42.900> usdc<00:02:43.500> and<00:02:43.920> this<00:02:44.099> is<00:02:44.160> what<00:02:44.280> people 00:02:44.449 --> 00:02:44.459 align:start position:0% consists of usdc and this is what people 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00:02:53.030 --> 00:02:53.040 align:start position:0% the the numbers are like 60 or like the 00:02:53.040 --> 00:02:56.449 align:start position:0% the the numbers are like 60 or like the PSM<00:02:53.340> usdc<00:02:53.940> then<00:02:54.420> you<00:02:54.599> have<00:02:54.660> another<00:02:54.780> 20<00:02:55.140> of<00:02:56.099> LP 00:02:56.449 --> 00:02:56.459 align:start position:0% PSM usdc then you have another 20 of LP 00:02:56.459 --> 00:02:59.030 align:start position:0% PSM usdc then you have another 20 of LP shares<00:02:56.879> against<00:02:57.060> usdc<00:02:57.840> and<00:02:58.560> of<00:02:58.680> course<00:02:58.860> in 00:02:59.030 --> 00:02:59.040 align:start position:0% shares against usdc and of course in 00:02:59.040 --> 00:03:00.290 align:start position:0% shares against usdc and of course in that<00:02:59.220> situation 00:03:00.290 --> 00:03:00.300 align:start position:0% that situation 00:03:00.300 --> 00:03:01.910 align:start position:0% that situation um<00:03:00.420> something<00:03:00.840> you<00:03:01.019> need<00:03:01.200> to<00:03:01.319> ask<00:03:01.500> is<00:03:01.680> are 00:03:01.910 --> 00:03:01.920 align:start position:0% um something you need to ask is are 00:03:01.920 --> 00:03:04.610 align:start position:0% um something you need to ask is are there<00:03:02.099> many<00:03:02.280> risks<00:03:02.640> associated<00:03:03.420> with<00:03:03.780> that<00:03:04.019> so 00:03:04.610 --> 00:03:04.620 align:start position:0% there many risks associated with that so 00:03:04.620 --> 00:03:06.770 align:start position:0% there many risks associated with that so for<00:03:04.860> usdc<00:03:05.400> for<00:03:05.640> example<00:03:05.879> there<00:03:06.360> could<00:03:06.540> be<00:03:06.660> some 00:03:06.770 --> 00:03:06.780 align:start position:0% for usdc for example there could be some 00:03:06.780 --> 00:03:09.710 align:start position:0% for usdc for example there could be some regulatory<00:03:07.319> risk<00:03:08.120> which<00:03:09.120> may<00:03:09.360> amount<00:03:09.599> to 00:03:09.710 --> 00:03:09.720 align:start position:0% regulatory risk which may amount to 00:03:09.720 --> 00:03:11.570 align:start position:0% regulatory risk which may amount to counterparty<00:03:10.260> risk<00:03:10.500> censorship<00:03:10.980> risk<00:03:11.280> and<00:03:11.400> so 00:03:11.570 --> 00:03:11.580 align:start position:0% counterparty risk censorship risk and so 00:03:11.580 --> 00:03:13.309 align:start position:0% counterparty risk censorship risk and so on 00:03:13.309 --> 00:03:13.319 align:start position:0% on 00:03:13.319 --> 00:03:15.530 align:start position:0% on um kind<00:03:13.560> of<00:03:13.680> the<00:03:13.800> goal<00:03:14.040> of<00:03:14.159> gyroscope<00:03:14.819> was<00:03:15.239> to 00:03:15.530 --> 00:03:15.540 align:start position:0% um kind of the goal of gyroscope was to 00:03:15.540 --> 00:03:18.890 align:start position:0% um kind of the goal of gyroscope was to build<00:03:15.720> something<00:03:16.159> like<00:03:17.159> a<00:03:17.400> PSM<00:03:17.819> 2.0 00:03:18.890 --> 00:03:18.900 align:start position:0% build something like a PSM 2.0 00:03:18.900 --> 00:03:21.229 align:start position:0% build something like a PSM 2.0 so<00:03:19.379> how<00:03:19.680> might<00:03:19.920> you<00:03:20.099> improve<00:03:20.519> on<00:03:20.879> this<00:03:21.000> design 00:03:21.229 --> 00:03:21.239 align:start position:0% so how might you improve on this design 00:03:21.239 --> 00:03:24.350 align:start position:0% so how might you improve on this design and<00:03:21.659> I<00:03:21.900> think<00:03:22.080> there<00:03:22.200> are<00:03:22.379> like<00:03:22.500> two<00:03:22.739> ways<00:03:23.360> the 00:03:24.350 --> 00:03:24.360 align:start position:0% and I think there are like two ways the 00:03:24.360 --> 00:03:26.030 align:start position:0% and I think there are like two ways the first<00:03:24.480> thing<00:03:24.659> is<00:03:24.840> you<00:03:25.019> may<00:03:25.140> want<00:03:25.319> to<00:03:25.440> diversify 00:03:26.030 --> 00:03:26.040 align:start position:0% first thing is you may want to diversify 00:03:26.040 --> 00:03:29.089 align:start position:0% first thing is you may want to diversify your<00:03:26.819> reserves<00:03:27.300> you<00:03:27.720> may<00:03:27.959> not<00:03:28.200> want<00:03:28.800> to<00:03:28.980> hold 00:03:29.089 --> 00:03:29.099 align:start position:0% your reserves you may not want to hold 00:03:29.099 --> 00:03:30.949 align:start position:0% your reserves you may not want to hold only<00:03:29.400> usdc 00:03:30.949 --> 00:03:30.959 align:start position:0% only usdc 00:03:30.959 --> 00:03:33.110 align:start position:0% only usdc and<00:03:31.920> the<00:03:32.040> second<00:03:32.159> thing<00:03:32.459> is<00:03:32.700> to<00:03:32.819> implement 00:03:33.110 --> 00:03:33.120 align:start position:0% and the second thing is to implement 00:03:33.120 --> 00:03:34.430 align:start position:0% and the second thing is to implement something<00:03:33.360> like<00:03:33.599> a<00:03:33.720> programmatic<00:03:34.200> risk 00:03:34.430 --> 00:03:34.440 align:start position:0% something like a programmatic risk 00:03:34.440 --> 00:03:36.890 align:start position:0% something like a programmatic risk control<00:03:34.560> that<00:03:35.180> reacts<00:03:36.180> autonomously<00:03:36.659> to 00:03:36.890 --> 00:03:36.900 align:start position:0% control that reacts autonomously to 00:03:36.900 --> 00:03:39.770 align:start position:0% control that reacts autonomously to market<00:03:37.080> conditions<00:03:38.120> so<00:03:39.120> that<00:03:39.239> that<00:03:39.480> kind<00:03:39.659> of 00:03:39.770 --> 00:03:39.780 align:start position:0% market conditions so that that kind of 00:03:39.780 --> 00:03:41.869 align:start position:0% market conditions so that that kind of can<00:03:39.900> be<00:03:40.080> seen<00:03:40.260> in<00:03:40.500> two<00:03:40.680> parts<00:03:40.860> the<00:03:41.519> first<00:03:41.700> one 00:03:41.869 --> 00:03:41.879 align:start position:0% can be seen in two parts the first one 00:03:41.879 --> 00:03:45.890 align:start position:0% can be seen in two parts the first one is<00:03:42.120> if<00:03:43.019> you<00:03:43.260> have<00:03:44.060> indicted<00:03:45.060> different<00:03:45.420> PSM 00:03:45.890 --> 00:03:45.900 align:start position:0% is if you have indicted different PSM 00:03:45.900 --> 00:03:48.110 align:start position:0% is if you have indicted different PSM vaults<00:03:46.200> are<00:03:46.319> independent 00:03:48.110 --> 00:03:48.120 align:start position:0% vaults are independent 00:03:48.120 --> 00:03:49.610 align:start position:0% vaults are independent um<00:03:48.180> but<00:03:48.480> you<00:03:48.599> probably<00:03:48.780> want<00:03:49.019> to<00:03:49.140> coordinate 00:03:49.610 --> 00:03:49.620 align:start position:0% um but you probably want to coordinate 00:03:49.620 --> 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align:start position:0% um to price the stable coin depending on 00:03:57.959 --> 00:03:59.390 align:start position:0% um to price the stable coin depending on market<00:03:58.140> conditions<00:03:58.680> especially<00:03:59.040> when<00:03:59.220> the 00:03:59.390 --> 00:03:59.400 align:start position:0% market conditions especially when the 00:03:59.400 --> 00:04:00.770 align:start position:0% market conditions especially when the system<00:03:59.580> should<00:03:59.940> the<00:04:00.120> system<00:04:00.239> become<00:04:00.599> under 00:04:00.770 --> 00:04:00.780 align:start position:0% system should the system become under 00:04:00.780 --> 00:04:01.910 align:start position:0% system should the system become under reserved 00:04:01.910 --> 00:04:01.920 align:start position:0% reserved 00:04:01.920 --> 00:04:04.430 align:start position:0% reserved and<00:04:02.280> this<00:04:02.640> is<00:04:02.700> kind<00:04:02.879> of<00:04:02.940> where<00:04:03.120> we're<00:04:03.299> going 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align:start position:0% and I just want to give you like the 00:04:11.159 --> 00:04:13.610 align:start position:0% and I just want to give you like the um<00:04:11.220> the<00:04:11.700> super<00:04:11.879> quick<00:04:12.120> overview 00:04:13.610 --> 00:04:13.620 align:start position:0% um the super quick overview 00:04:13.620 --> 00:04:17.090 align:start position:0% um the super quick overview um basically<00:04:14.220> we<00:04:14.459> want<00:04:14.700> picture<00:04:15.420> right<00:04:16.260> so<00:04:16.620> we 00:04:17.090 --> 00:04:17.100 align:start position:0% um basically we want picture right so we 00:04:17.100 --> 00:04:18.370 align:start position:0% um basically we want picture right so we have<00:04:17.280> a<00:04:17.340> reserve<00:04:17.699> that<00:04:17.760> consists<00:04:18.239> of 00:04:18.370 --> 00:04:18.380 align:start position:0% have a reserve that consists of 00:04:18.380 --> 00:04:21.349 align:start position:0% have a reserve that consists of different<00:04:19.459> asset<00:04:20.459> classes<00:04:21.000> that<00:04:21.180> are 00:04:21.349 --> 00:04:21.359 align:start position:0% different asset classes that are 00:04:21.359 --> 00:04:24.070 align:start position:0% different asset classes that are probably<00:04:21.479> structured<00:04:22.079> in<00:04:22.260> some<00:04:22.380> way 00:04:24.070 --> 00:04:24.080 align:start position:0% probably structured in some way 00:04:24.080 --> 00:04:26.090 align:start position:0% probably structured in some way and<00:04:25.080> then<00:04:25.199> you<00:04:25.320> need<00:04:25.440> to<00:04:25.560> answer<00:04:25.680> several 00:04:26.090 --> 00:04:26.100 align:start position:0% and then you need to answer several 00:04:26.100 --> 00:04:27.710 align:start position:0% and then you need to answer several questions<00:04:26.340> like<00:04:26.699> which<00:04:26.880> of<00:04:27.060> these<00:04:27.360> which 00:04:27.710 --> 00:04:27.720 align:start position:0% questions like which of these which 00:04:27.720 --> 00:04:30.110 align:start position:0% questions like which of these which assets<00:04:28.139> should<00:04:28.320> that<00:04:28.500> be<00:04:28.740> which<00:04:29.699> risks<00:04:30.060> are 00:04:30.110 --> 00:04:30.120 align:start position:0% assets should that be which risks are 00:04:30.120 --> 00:04:31.670 align:start position:0% assets should that be which risks are these<00:04:30.360> exposed<00:04:30.720> to<00:04:30.720> how<00:04:30.960> to<00:04:31.080> structure<00:04:31.500> the 00:04:31.670 --> 00:04:31.680 align:start position:0% these exposed to how to structure the 00:04:31.680 --> 00:04:33.650 align:start position:0% these exposed to how to structure the whole<00:04:31.860> thing<00:04:32.040> so<00:04:32.340> that<00:04:32.580> the<00:04:33.000> risks<00:04:33.360> are 00:04:33.650 --> 00:04:33.660 align:start position:0% whole thing so that the risks are 00:04:33.660 --> 00:04:35.390 align:start position:0% whole thing so that the risks are somehow<00:04:33.960> contained 00:04:35.390 --> 00:04:35.400 align:start position:0% somehow contained 00:04:35.400 --> 00:04:37.010 align:start position:0% somehow contained um<00:04:35.460> how<00:04:35.639> do<00:04:35.759> you<00:04:35.820> generate<00:04:36.120> details<00:04:36.540> on<00:04:36.840> the 00:04:37.010 --> 00:04:37.020 align:start position:0% um how do you generate details on the 00:04:37.020 --> 00:04:38.570 align:start position:0% um how do you generate details on the whole<00:04:37.139> structure<00:04:37.560> you<00:04:37.979> probably<00:04:38.160> want<00:04:38.400> to 00:04:38.570 --> 00:04:38.580 align:start position:0% whole structure you probably want to 00:04:38.580 --> 00:04:40.010 align:start position:0% whole structure you probably want to price<00:04:38.759> these<00:04:39.060> things<00:04:39.180> with<00:04:39.300> oracles<00:04:39.720> and<00:04:39.900> so 00:04:40.010 --> 00:04:40.020 align:start position:0% price these things with oracles and so 00:04:40.020 --> 00:04:41.390 align:start position:0% price these things with oracles and so on<00:04:40.080> these<00:04:40.560> are<00:04:40.680> all<00:04:40.800> things<00:04:40.919> I'm<00:04:41.040> not<00:04:41.160> going<00:04:41.340> to 00:04:41.390 --> 00:04:41.400 align:start position:0% on these are all things I'm not going to 00:04:41.400 --> 00:04:42.830 align:start position:0% on these are all things I'm not going to talk<00:04:41.520> about<00:04:41.639> but<00:04:41.880> questions<00:04:42.120> we<00:04:42.419> still<00:04:42.600> had<00:04:42.720> to 00:04:42.830 --> 00:04:42.840 align:start position:0% talk about but questions we still had to 00:04:42.840 --> 00:04:45.469 align:start position:0% talk about but questions we still had to answer<00:04:42.960> for<00:04:43.199> gyroscope<00:04:43.800> and<00:04:44.580> today<00:04:44.940> I<00:04:45.180> want<00:04:45.300> to 00:04:45.469 --> 00:04:45.479 align:start position:0% answer for gyroscope and today I want to 00:04:45.479 --> 00:04:46.790 align:start position:0% answer for gyroscope and today I want to answer 00:04:46.790 --> 00:04:46.800 align:start position:0% answer 00:04:46.800 --> 00:04:49.790 align:start position:0% answer um<00:04:46.919> this<00:04:47.820> mechanism<00:04:48.479> basically<00:04:49.380> the<00:04:49.620> question 00:04:49.790 --> 00:04:49.800 align:start position:0% um this mechanism basically the question 00:04:49.800 --> 00:04:51.890 align:start position:0% um this mechanism basically the question is<00:04:49.979> someone<00:04:50.220> comes<00:04:50.580> to<00:04:50.699> your<00:04:50.880> system<00:04:51.060> the 00:04:51.890 --> 00:04:51.900 align:start position:0% is someone comes to your system the 00:04:51.900 --> 00:04:55.010 align:start position:0% is someone comes to your system the system<00:04:52.139> may<00:04:52.680> be<00:04:52.800> under<00:04:52.979> reserved<00:04:53.520> or<00:04:54.020> illiquid 00:04:55.010 --> 00:04:55.020 align:start position:0% system may be under reserved or illiquid 00:04:55.020 --> 00:04:57.650 align:start position:0% system may be under reserved or illiquid to<00:04:55.139> some<00:04:55.320> degree<00:04:56.000> they<00:04:57.000> want<00:04:57.180> to<00:04:57.300> redeem<00:04:57.540> a 00:04:57.650 --> 00:04:57.660 align:start position:0% to some degree they want to redeem a 00:04:57.660 --> 00:05:00.350 align:start position:0% to some degree they want to redeem a stable<00:04:57.900> coin<00:04:58.320> what<00:04:59.280> is<00:04:59.460> the<00:04:59.759> amount<00:04:59.940> of<00:05:00.060> assets 00:05:00.350 --> 00:05:00.360 align:start position:0% stable coin what is the amount of assets 00:05:00.360 --> 00:05:03.890 align:start position:0% stable coin what is the amount of assets you<00:05:00.540> offer<00:05:00.840> them 00:05:03.890 --> 00:05:03.900 align:start position:0% 00:05:03.900 --> 00:05:07.010 align:start position:0% um<00:05:03.960> and<00:05:04.860> to<00:05:05.160> do<00:05:05.340> that<00:05:05.520> we<00:05:06.060> introduce<00:05:06.600> a<00:05:06.900> more 00:05:07.010 --> 00:05:07.020 align:start position:0% um and to do that we introduce a more 00:05:07.020 --> 00:05:09.050 align:start position:0% um and to do that we introduce a more General<00:05:07.259> tool<00:05:07.860> which<00:05:08.340> is<00:05:08.460> what<00:05:08.699> we<00:05:08.759> call<00:05:08.880> the 00:05:09.050 --> 00:05:09.060 align:start position:0% General tool which is what we call the 00:05:09.060 --> 00:05:10.670 align:start position:0% General tool which is what we call the Redemption<00:05:09.419> curve<00:05:09.840> and<00:05:10.199> this<00:05:10.380> is<00:05:10.440> a<00:05:10.560> general 00:05:10.670 --> 00:05:10.680 align:start position:0% Redemption curve and this is a general 00:05:10.680 --> 00:05:12.710 align:start position:0% Redemption curve and this is a general tool<00:05:11.040> to<00:05:11.160> analyze<00:05:11.580> any<00:05:11.940> stable<00:05:12.240> coil<00:05:12.600> design 00:05:12.710 --> 00:05:12.720 align:start position:0% tool to analyze any stable coil design 00:05:12.720 --> 00:05:14.570 align:start position:0% tool to analyze any stable coil design basically 00:05:14.570 --> 00:05:14.580 align:start position:0% basically 00:05:14.580 --> 00:05:18.469 align:start position:0% basically um<00:05:14.699> so<00:05:15.240> the<00:05:15.479> Redemption<00:05:15.840> curve<00:05:16.259> is<00:05:17.479> falling 00:05:18.469 --> 00:05:18.479 align:start position:0% um so the Redemption curve is falling 00:05:18.479 --> 00:05:21.230 align:start position:0% um so the Redemption curve is falling curve<00:05:18.780> you<00:05:19.080> have<00:05:19.199> two<00:05:19.320> axes<00:05:19.740> on<00:05:20.460> one<00:05:20.580> axis<00:05:21.000> you 00:05:21.230 --> 00:05:21.240 align:start position:0% curve you have two axes on one axis you 00:05:21.240 --> 00:05:23.570 align:start position:0% curve you have two axes on one axis you have<00:05:21.479> the<00:05:22.080> Redemption<00:05:22.560> level<00:05:22.740> which<00:05:23.400> is 00:05:23.570 --> 00:05:23.580 align:start position:0% have the Redemption level which is 00:05:23.580 --> 00:05:25.070 align:start position:0% have the Redemption level which is basically<00:05:24.060> the<00:05:24.240> amount<00:05:24.419> of<00:05:24.600> stable<00:05:24.840> coins 00:05:25.070 --> 00:05:25.080 align:start position:0% basically the amount of stable coins 00:05:25.080 --> 00:05:27.650 align:start position:0% basically the amount of stable coins that<00:05:25.259> are<00:05:25.380> getting<00:05:25.500> redeemed<00:05:26.520> and<00:05:27.360> on<00:05:27.479> the 00:05:27.650 --> 00:05:27.660 align:start position:0% that are getting redeemed and on the 00:05:27.660 --> 00:05:29.090 align:start position:0% that are getting redeemed and on the other<00:05:27.720> axis<00:05:28.020> you<00:05:28.259> have<00:05:28.380> the<00:05:28.500> Redemption<00:05:28.860> price 00:05:29.090 --> 00:05:29.100 align:start position:0% other axis you have the Redemption price 00:05:29.100 --> 00:05:30.710 align:start position:0% other axis you have the Redemption price that<00:05:29.400> the<00:05:29.520> mechanism<00:05:29.880> offers<00:05:30.360> to<00:05:30.600> the 00:05:30.710 --> 00:05:30.720 align:start position:0% that the mechanism offers to the 00:05:30.720 --> 00:05:34.310 align:start position:0% that the mechanism offers to the Redeemer<00:05:31.280> and<00:05:32.280> now<00:05:32.400> we<00:05:32.580> assume<00:05:33.120> now<00:05:34.020> we<00:05:34.199> look 00:05:34.310 --> 00:05:34.320 align:start position:0% Redeemer and now we assume now we look 00:05:34.320 --> 00:05:36.290 align:start position:0% Redeemer and now we assume now we look at<00:05:34.440> what<00:05:34.979> happens<00:05:35.160> when<00:05:35.400> people<00:05:35.580> redeem<00:05:36.060> more 00:05:36.290 --> 00:05:36.300 align:start position:0% at what happens when people redeem more 00:05:36.300 --> 00:05:39.050 align:start position:0% at what happens when people redeem more and<00:05:36.419> more<00:05:36.860> in<00:05:37.860> market<00:05:38.100> conditions<00:05:38.759> don't 00:05:39.050 --> 00:05:39.060 align:start position:0% and more in market conditions don't 00:05:39.060 --> 00:05:41.570 align:start position:0% and more in market conditions don't change<00:05:39.360> for<00:05:39.780> the<00:05:39.960> beginning<00:05:40.280> so<00:05:41.280> nothing 00:05:41.570 --> 00:05:41.580 align:start position:0% change for the beginning so nothing 00:05:41.580 --> 00:05:44.689 align:start position:0% change for the beginning so nothing happens<00:05:42.080> no<00:05:43.080> prices<00:05:43.320> change<00:05:43.800> but<00:05:44.280> people<00:05:44.460> just 00:05:44.689 --> 00:05:44.699 align:start position:0% happens no prices change but people just 00:05:44.699 --> 00:05:47.930 align:start position:0% happens no prices change but people just redeem<00:05:45.060> more<00:05:45.180> and<00:05:45.300> more<00:05:45.680> and<00:05:46.680> ideally<00:05:47.460> of 00:05:47.930 --> 00:05:47.940 align:start position:0% redeem more and more and ideally of 00:05:47.940 --> 00:05:50.029 align:start position:0% redeem more and more and ideally of course<00:05:48.000> what<00:05:48.240> you<00:05:48.360> want<00:05:48.539> is<00:05:48.900> this<00:05:49.380> curve<00:05:49.740> you 00:05:50.029 --> 00:05:50.039 align:start position:0% course what you want is this curve you 00:05:50.039 --> 00:05:51.230 align:start position:0% course what you want is this curve you can<00:05:50.220> always<00:05:50.280> redeem<00:05:50.580> at<00:05:50.759> the<00:05:50.880> dollar<00:05:51.000> because 00:05:51.230 --> 00:05:51.240 align:start position:0% can always redeem at the dollar because 00:05:51.240 --> 00:05:53.330 align:start position:0% can always redeem at the dollar because then<00:05:51.479> you<00:05:51.720> always<00:05:51.960> stabilize<00:05:52.440> your<00:05:52.680> pack<00:05:52.860> at 00:05:53.330 --> 00:05:53.340 align:start position:0% then you always stabilize your pack at 00:05:53.340 --> 00:05:55.430 align:start position:0% then you always stabilize your pack at exactly<00:05:53.699> a<00:05:53.759> dollar 00:05:55.430 --> 00:05:55.440 align:start position:0% exactly a dollar 00:05:55.440 --> 00:05:57.409 align:start position:0% exactly a dollar um<00:05:55.500> and<00:05:56.160> the<00:05:56.280> higher<00:05:56.520> your<00:05:56.580> curvature<00:05:56.940> here<00:05:57.240> is 00:05:57.409 --> 00:05:57.419 align:start position:0% um and the higher your curvature here is 00:05:57.419 --> 00:06:00.290 align:start position:0% um and the higher your curvature here is the<00:05:57.960> less<00:05:58.080> you<00:05:58.320> support<00:05:58.560> the<00:05:58.979> peg<00:05:59.220> as<00:06:00.000> more<00:06:00.180> and 00:06:00.290 --> 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you<00:06:09.600> try<00:06:09.780> to<00:06:09.960> support<00:06:10.139> the<00:06:10.380> pack<00:06:10.560> as<00:06:10.800> long<00:06:10.979> as 00:06:11.029 --> 00:06:11.039 align:start position:0% you try to support the pack as long as 00:06:11.039 --> 00:06:14.090 align:start position:0% you try to support the pack as long as possible<00:06:11.400> until<00:06:12.060> your<00:06:12.479> reserve<00:06:12.900> is<00:06:13.020> empty<00:06:13.380> and 00:06:14.090 --> 00:06:14.100 align:start position:0% possible until your reserve is empty and 00:06:14.100 --> 00:06:16.010 align:start position:0% possible until your reserve is empty and then<00:06:14.220> you<00:06:14.400> don't<00:06:14.520> support<00:06:14.699> it<00:06:14.940> anymore 00:06:16.010 --> 00:06:16.020 align:start position:0% then you don't support it anymore 00:06:16.020 --> 00:06:18.409 align:start position:0% then you don't support it anymore and<00:06:16.860> and<00:06:16.860> kind<00:06:17.160> of<00:06:17.280> my<00:06:17.400> argument<00:06:17.699> will<00:06:18.000> be<00:06:18.180> that 00:06:18.409 --> 00:06:18.419 align:start position:0% and and kind of my argument will be that 00:06:18.419 --> 00:06:20.450 align:start position:0% and and kind of my argument will be that maybe<00:06:18.840> this<00:06:19.139> Redemption<00:06:19.500> curve<00:06:19.800> is<00:06:19.919> not<00:06:20.160> ideal 00:06:20.450 --> 00:06:20.460 align:start position:0% maybe this Redemption curve is not ideal 00:06:20.460 --> 00:06:22.070 align:start position:0% maybe this Redemption curve is not ideal and<00:06:20.699> many<00:06:20.880> other<00:06:21.060> Redemption<00:06:21.479> curves<00:06:21.720> aren't 00:06:22.070 --> 00:06:22.080 align:start position:0% and many other Redemption curves aren't 00:06:22.080 --> 00:06:24.590 align:start position:0% and many other Redemption curves aren't ideal<00:06:22.440> either 00:06:24.590 --> 00:06:24.600 align:start position:0% ideal either 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Fiat world 00:06:33.720 --> 00:06:35.629 align:start position:0% in the real world or in the Fiat world um for<00:06:34.020> example<00:06:34.319> the<00:06:34.560> attack<00:06:34.979> on<00:06:35.280> the<00:06:35.400> British 00:06:35.629 --> 00:06:35.639 align:start position:0% um for example the attack on the British 00:06:35.639 --> 00:06:38.749 align:start position:0% um for example the attack on the British pound<00:06:35.759> in<00:06:36.060> the<00:06:36.180> 90s<00:06:36.539> was<00:06:37.440> basically 00:06:38.749 --> 00:06:38.759 align:start position:0% pound in the 90s was basically 00:06:38.759 --> 00:06:41.270 align:start position:0% pound in the 90s was basically um a<00:06:39.180> continuous<00:06:39.600> outflow 00:06:41.270 --> 00:06:41.280 align:start position:0% um a continuous outflow 00:06:41.280 --> 00:06:42.950 align:start position:0% um a continuous outflow um<00:06:41.400> from<00:06:41.880> the<00:06:42.000> from<00:06:42.300> the<00:06:42.419> British<00:06:42.720> pound 00:06:42.950 --> 00:06:42.960 align:start position:0% um from the from the British pound 00:06:42.960 --> 00:06:44.749 align:start position:0% um from the from the British pound basically<00:06:43.380> a<00:06:43.620> continuous<00:06:44.100> Redemption<00:06:44.639> of 00:06:44.749 --> 00:06:44.759 align:start position:0% basically a continuous Redemption of 00:06:44.759 --> 00:06:46.730 align:start position:0% basically a continuous Redemption of pounds<00:06:45.120> against<00:06:45.300> other<00:06:45.600> assets<00:06:45.960> until<00:06:46.500> the 00:06:46.730 --> 00:06:46.740 align:start position:0% pounds against other assets until the 00:06:46.740 --> 00:06:48.350 align:start position:0% pounds against other assets until the central<00:06:46.860> bank<00:06:47.100> was<00:06:47.280> no<00:06:47.520> longer<00:06:47.940> willing<00:06:48.240> to 00:06:48.350 --> 00:06:48.360 align:start position:0% central bank was no longer willing to 00:06:48.360 --> 00:06:50.210 align:start position:0% central bank was no longer willing to support<00:06:48.600> the<00:06:48.900> peg 00:06:50.210 --> 00:06:50.220 align:start position:0% support the peg 00:06:50.220 --> 00:06:52.430 align:start position:0% support the peg um<00:06:50.280> and<00:06:50.819> then<00:06:50.940> you<00:06:51.180> see<00:06:51.419> this<00:06:51.780> this<00:06:52.080> kind<00:06:52.319> of 00:06:52.430 --> 00:06:52.440 align:start position:0% um and then you see this this kind of 00:06:52.440 --> 00:06:55.070 align:start position:0% um and then you see this this kind of drop<00:06:52.759> where<00:06:53.759> some<00:06:54.300> people<00:06:54.479> made<00:06:54.720> a<00:06:54.840> lot<00:06:54.960> of 00:06:55.070 --> 00:06:55.080 align:start position:0% drop where some people made a lot of 00:06:55.080 --> 00:06:55.850 align:start position:0% drop where some people made a lot of money 00:06:55.850 --> 00:06:55.860 align:start position:0% money 00:06:55.860 --> 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look<00:07:04.919> at<00:07:05.160> stable 00:07:05.629 --> 00:07:05.639 align:start position:0% um if we look at if we look at stable 00:07:05.639 --> 00:07:06.909 align:start position:0% um if we look at if we look at stable coins 00:07:06.909 --> 00:07:06.919 align:start position:0% coins 00:07:06.919 --> 00:07:09.590 align:start position:0% coins we've<00:07:07.919> seen<00:07:08.220> similar<00:07:08.699> behaviors<00:07:09.060> the<00:07:09.300> Strat 00:07:09.590 --> 00:07:09.600 align:start position:0% we've seen similar behaviors the Strat 00:07:09.600 --> 00:07:11.930 align:start position:0% we've seen similar behaviors the Strat is<00:07:09.660> a<00:07:09.840> little<00:07:10.020> bit<00:07:10.080> outdated<00:07:10.639> but<00:07:11.639> there<00:07:11.819> was 00:07:11.930 --> 00:07:11.940 align:start position:0% is a little bit outdated but there was 00:07:11.940 --> 00:07:14.570 align:start position:0% is a little bit outdated but there was this<00:07:12.120> period<00:07:12.360> in<00:07:12.539> like<00:07:12.720> 2021<00:07:13.319> where<00:07:14.100> like<00:07:14.340> many 00:07:14.570 --> 00:07:14.580 align:start position:0% this period in like 2021 where like many 00:07:14.580 --> 00:07:16.309 align:start position:0% this period in like 2021 where like many creative<00:07:15.060> stable<00:07:15.419> coin<00:07:15.780> designs<00:07:16.139> were 00:07:16.309 --> 00:07:16.319 align:start position:0% creative stable coin designs were 00:07:16.319 --> 00:07:19.010 align:start position:0% creative stable coin designs were created<00:07:16.680> and<00:07:16.979> many<00:07:17.160> of<00:07:17.280> them<00:07:17.400> crashed<00:07:17.940> and<00:07:18.780> in 00:07:19.010 --> 00:07:19.020 align:start position:0% created and many of them crashed and in 00:07:19.020 --> 00:07:22.730 align:start position:0% created and many of them crashed and in a<00:07:19.199> somewhat<00:07:19.740> similar<00:07:19.979> way<00:07:20.160> very<00:07:20.400> abruptly 00:07:22.730 --> 00:07:22.740 align:start position:0% a somewhat similar way very abruptly 00:07:22.740 --> 00:07:23.330 align:start position:0% a somewhat similar way very abruptly um 00:07:23.330 --> 00:07:23.340 align:start position:0% um 00:07:23.340 --> 00:07:25.969 align:start position:0% um I<00:07:23.880> want<00:07:24.000> to<00:07:24.120> look<00:07:24.180> at<00:07:24.360> one<00:07:24.780> like<00:07:25.199> design<00:07:25.560> case 00:07:25.969 --> 00:07:25.979 align:start position:0% I want to look at one like design case 00:07:25.979 --> 00:07:27.469 align:start position:0% I want to look at one like design case study<00:07:26.400> which<00:07:26.580> would<00:07:26.699> be<00:07:26.819> Fey<00:07:27.120> the<00:07:27.300> original 00:07:27.469 --> 00:07:27.479 align:start position:0% study which would be Fey the original 00:07:27.479 --> 00:07:29.330 align:start position:0% study which would be Fey the original design<00:07:27.780> of<00:07:28.020> Fae<00:07:28.380> which<00:07:28.500> was<00:07:28.680> also<00:07:28.919> not<00:07:29.099> very 00:07:29.330 --> 00:07:29.340 align:start position:0% design of Fae which was also not very 00:07:29.340 --> 00:07:32.570 align:start position:0% design of Fae which was also not very successful<00:07:30.180> in<00:07:30.360> its<00:07:30.599> original<00:07:30.720> form 00:07:32.570 --> 00:07:32.580 align:start position:0% successful in its original form 00:07:32.580 --> 00:07:35.629 align:start position:0% successful in its original form um<00:07:33.020> and<00:07:34.020> so<00:07:34.380> Faye<00:07:34.979> had<00:07:35.099> these<00:07:35.460> direct 00:07:35.629 --> 00:07:35.639 align:start position:0% um and so Faye had these direct 00:07:35.639 --> 00:07:37.909 align:start position:0% um and so Faye had these direct incentives<00:07:36.240> which<00:07:36.599> basically<00:07:36.900> means 00:07:37.909 --> 00:07:37.919 align:start position:0% incentives which basically means 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00:08:01.560 align:start position:0% less steep 00:08:01.560 --> 00:08:03.350 align:start position:0% less steep um and<00:08:02.160> we<00:08:02.280> can<00:08:02.400> see<00:08:02.580> kind<00:08:02.759> of<00:08:02.880> the<00:08:03.000> effect<00:08:03.120> of 00:08:03.350 --> 00:08:03.360 align:start position:0% um and we can see kind of the effect of 00:08:03.360 --> 00:08:06.050 align:start position:0% um and we can see kind of the effect of these<00:08:03.660> like<00:08:03.780> steep<00:08:04.080> Redemption<00:08:04.500> curve<00:08:04.919> here<00:08:05.520> I 00:08:06.050 --> 00:08:06.060 align:start position:0% these like steep Redemption curve here I 00:08:06.060 --> 00:08:07.309 align:start position:0% these like steep Redemption curve here I hope<00:08:06.180> this<00:08:06.300> is<00:08:06.419> kind<00:08:06.599> of<00:08:06.660> visible<00:08:06.960> this<00:08:07.139> is 00:08:07.309 --> 00:08:07.319 align:start position:0% hope this is kind of visible this is 00:08:07.319 --> 00:08:09.710 align:start position:0% hope this is kind of visible this is like<00:08:07.440> the<00:08:07.560> price<00:08:07.800> of<00:08:07.979> a<00:08:08.160> after<00:08:08.460> launch 00:08:09.710 --> 00:08:09.720 align:start position:0% like the price of a after launch 00:08:09.720 --> 00:08:11.870 align:start position:0% like the price of a after launch um and<00:08:09.900> it<00:08:10.020> had<00:08:10.199> like<00:08:10.440> a<00:08:10.680> like<00:08:11.039> a<00:08:11.220> huge<00:08:11.520> uh 00:08:11.870 --> 00:08:11.880 align:start position:0% um and it had like a like a huge uh 00:08:11.880 --> 00:08:16.010 align:start position:0% um and it had like a like a huge uh price<00:08:12.120> drop<00:08:12.360> with<00:08:12.660> a<00:08:12.780> lot<00:08:12.840> of<00:08:12.960> volatility 00:08:16.010 --> 00:08:16.020 align:start position:0% 00:08:16.020 --> 00:08:17.990 align:start position:0% um I<00:08:16.620> should<00:08:16.800> probably<00:08:16.979> talk<00:08:17.280> about<00:08:17.460> the<00:08:17.819> the 00:08:17.990 --> 00:08:18.000 align:start position:0% um I should probably talk about the the 00:08:18.000 --> 00:08:19.430 align:start position:0% um I should probably talk about the the elephant<00:08:18.419> in<00:08:18.599> the<00:08:18.720> room<00:08:18.840> or<00:08:19.080> maybe<00:08:19.259> not 00:08:19.430 --> 00:08:19.440 align:start position:0% elephant in the room or maybe not 00:08:19.440 --> 00:08:20.990 align:start position:0% elephant in the room or maybe not elephant<00:08:19.919> anymore 00:08:20.990 --> 00:08:21.000 align:start position:0% elephant anymore 00:08:21.000 --> 00:08:23.749 align:start position:0% elephant anymore um Sunny<00:08:21.720> Road<00:08:22.020> shares<00:08:22.440> and<00:08:23.280> the<00:08:23.400> way<00:08:23.520> I<00:08:23.639> think 00:08:23.749 --> 00:08:23.759 align:start position:0% um Sunny Road shares and the way I think 00:08:23.759 --> 00:08:27.650 align:start position:0% um Sunny Road shares and the way I think about<00:08:23.879> Sanyo<00:08:24.419> shares<00:08:24.840> is<00:08:25.620> essentially 00:08:27.650 --> 00:08:27.660 align:start position:0% about Sanyo shares is essentially 00:08:27.660 --> 00:08:29.089 align:start position:0% about Sanyo shares is essentially um that<00:08:28.020> you<00:08:28.080> redeem<00:08:28.319> at<00:08:28.500> one<00:08:28.680> dollar<00:08:28.800> but 00:08:29.089 --> 00:08:29.099 align:start position:0% um that you redeem at one dollar but 00:08:29.099 --> 00:08:30.710 align:start position:0% um that you redeem at one dollar but your<00:08:29.220> backing<00:08:29.580> is<00:08:29.819> an<00:08:29.940> endogenous<00:08:30.419> asset 00:08:30.710 --> 00:08:30.720 align:start position:0% your backing is an endogenous asset 00:08:30.720 --> 00:08:33.230 align:start position:0% your backing is an endogenous asset that's<00:08:30.900> basically<00:08:31.319> uh<00:08:32.279> very<00:08:32.459> very<00:08:32.640> tied<00:08:33.120> into 00:08:33.230 --> 00:08:33.240 align:start position:0% that's basically uh very very tied into 00:08:33.240 --> 00:08:35.449 align:start position:0% that's basically uh very very tied into your<00:08:33.539> project<00:08:33.719> itself<00:08:34.200> and<00:08:34.860> this<00:08:35.039> can<00:08:35.159> lead<00:08:35.339> to 00:08:35.449 --> 00:08:35.459 align:start position:0% your project itself and this can lead to 00:08:35.459 --> 00:08:37.720 align:start position:0% your project itself and this can lead to some<00:08:35.580> negative<00:08:35.880> feedback<00:08:36.180> spirals 00:08:37.720 --> 00:08:37.730 align:start position:0% some negative feedback spirals 00:08:37.730 --> 00:08:38.209 align:start position:0% some negative feedback spirals [Music] 00:08:38.209 --> 00:08:38.219 align:start position:0% [Music] 00:08:38.219 --> 00:08:38.870 align:start position:0% [Music] um 00:08:38.870 --> 00:08:38.880 align:start position:0% um 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the<00:08:49.019> market<00:08:49.140> to<00:08:49.440> buy 00:08:49.550 --> 00:08:49.560 align:start position:0% the willingness of the market to buy 00:08:49.560 --> 00:08:52.190 align:start position:0% the willingness of the market to buy your<00:08:49.740> senior<00:08:50.100> shares<00:08:50.519> is<00:08:50.640> exhausted<00:08:51.180> and<00:08:51.899> then 00:08:52.190 --> 00:08:52.200 align:start position:0% your senior shares is exhausted and then 00:08:52.200 --> 00:08:54.949 align:start position:0% your senior shares is exhausted and then you<00:08:52.320> basically<00:08:52.620> crash<00:08:53.040> very<00:08:53.220> rapidly<00:08:53.760> and<00:08:54.600> I 00:08:54.949 --> 00:08:54.959 align:start position:0% you basically crash very rapidly and I 00:08:54.959 --> 00:08:57.110 align:start position:0% you basically crash very rapidly and I should<00:08:55.140> probably<00:08:55.500> show<00:08:55.800> this 00:08:57.110 --> 00:08:57.120 align:start position:0% should probably show this 00:08:57.120 --> 00:08:58.190 align:start position:0% should probably show this um 00:08:58.190 --> 00:08:58.200 align:start position:0% um 00:08:58.200 --> 00:09:00.290 align:start position:0% um right 00:09:00.290 --> 00:09:00.300 align:start position:0% right 00:09:00.300 --> 00:09:01.009 align:start position:0% right um 00:09:01.009 --> 00:09:01.019 align:start position:0% um 00:09:01.019 --> 00:09:03.170 align:start position:0% um the<00:09:01.560> the<00:09:01.560> Supply<00:09:02.399> right<00:09:02.700> here<00:09:02.940> has<00:09:03.060> this 00:09:03.170 --> 00:09:03.180 align:start position:0% the the Supply right here has this 00:09:03.180 --> 00:09:04.910 align:start position:0% the the Supply right here has this Supply<00:09:03.360> inflation<00:09:03.779> at<00:09:04.019> the<00:09:04.140> same<00:09:04.260> moment<00:09:04.560> but 00:09:04.910 --> 00:09:04.920 align:start position:0% Supply inflation at the same moment but 00:09:04.920 --> 00:09:07.070 align:start position:0% Supply inflation at the same moment but it<00:09:05.339> doesn't<00:09:05.459> really<00:09:05.700> matter<00:09:06.000> because<00:09:06.720> people 00:09:07.070 --> 00:09:07.080 align:start position:0% it doesn't really matter because people 00:09:07.080 --> 00:09:08.990 align:start position:0% it doesn't really matter because people don't<00:09:07.440> want<00:09:07.680> to<00:09:07.860> the<00:09:08.339> amount<00:09:08.519> of<00:09:08.640> senior 00:09:08.990 --> 00:09:09.000 align:start position:0% don't want to the amount of senior 00:09:09.000 --> 00:09:10.190 align:start position:0% don't want to the amount of senior shares<00:09:09.360> people<00:09:09.480> want<00:09:09.660> to<00:09:09.779> buy<00:09:09.899> doesn't 00:09:10.190 --> 00:09:10.200 align:start position:0% shares people want to buy doesn't 00:09:10.200 --> 00:09:11.329 align:start position:0% shares people want to buy doesn't increase 00:09:11.329 --> 00:09:11.339 align:start position:0% increase 00:09:11.339 --> 00:09:13.070 align:start position:0% increase of<00:09:12.000> the<00:09:12.120> amount<00:09:12.300> of<00:09:12.360> dollars<00:09:12.660> people<00:09:12.839> want<00:09:13.019> to 00:09:13.070 --> 00:09:13.080 align:start position:0% of the amount of dollars people want to 00:09:13.080 --> 00:09:15.410 align:start position:0% of the amount of dollars people want to put<00:09:13.200> into<00:09:13.320> senior<00:09:13.680> chairs<00:09:13.980> I<00:09:14.100> should<00:09:14.220> say 00:09:15.410 --> 00:09:15.420 align:start position:0% put into senior chairs I should say 00:09:15.420 --> 00:09:17.389 align:start position:0% put into senior chairs I should say um<00:09:15.480> I<00:09:15.899> I<00:09:16.019> should<00:09:16.320> point<00:09:16.440> out<00:09:16.620> one<00:09:16.980> thing<00:09:17.100> about 00:09:17.389 --> 00:09:17.399 align:start position:0% um I I should point out one thing about 00:09:17.399 --> 00:09:18.829 align:start position:0% um I I should point out one thing about this<00:09:17.700> particular<00:09:18.060> talk 00:09:18.829 --> 00:09:18.839 align:start position:0% this particular talk 00:09:18.839 --> 00:09:20.630 align:start position:0% this particular talk this<00:09:19.440> was<00:09:19.560> when<00:09:19.740> I<00:09:19.920> gave<00:09:20.040> the<00:09:20.279> first<00:09:20.459> version 00:09:20.630 --> 00:09:20.640 align:start position:0% this was when I gave the first version 00:09:20.640 --> 00:09:22.970 align:start position:0% this was when I gave the first version of<00:09:20.940> this<00:09:21.120> talk<00:09:21.500> this<00:09:22.500> was<00:09:22.620> not<00:09:22.740> without 00:09:22.970 --> 00:09:22.980 align:start position:0% of this talk this was not without 00:09:22.980 --> 00:09:25.790 align:start position:0% of this talk this was not without precedent<00:09:23.720> we<00:09:24.720> had<00:09:24.839> a<00:09:25.019> very<00:09:25.140> similar<00:09:25.560> system 00:09:25.790 --> 00:09:25.800 align:start position:0% precedent we had a very similar system 00:09:25.800 --> 00:09:29.090 align:start position:0% precedent we had a very similar system uh<00:09:26.459> called<00:09:26.760> iron<00:09:27.120> you<00:09:28.080> may<00:09:28.200> remember<00:09:28.380> which 00:09:29.090 --> 00:09:29.100 align:start position:0% uh called iron you may remember which 00:09:29.100 --> 00:09:30.889 align:start position:0% uh called iron you may remember which also<00:09:29.399> crashed<00:09:29.700> in<00:09:29.820> a<00:09:30.000> very<00:09:30.120> similar<00:09:30.480> way<00:09:30.600> so 00:09:30.889 --> 00:09:30.899 align:start position:0% also crashed in a very similar way so 00:09:30.899 --> 00:09:33.170 align:start position:0% also crashed in a very similar way so here<00:09:31.080> you<00:09:31.200> have<00:09:31.320> the<00:09:31.500> stable<00:09:31.740> coin<00:09:32.180> that 00:09:33.170 --> 00:09:33.180 align:start position:0% here you have the stable coin that 00:09:33.180 --> 00:09:36.290 align:start position:0% here you have the stable coin that crashed<00:09:33.540> at<00:09:33.720> the<00:09:33.899> same<00:09:34.080> time<00:09:34.700> the<00:09:35.700> endogenous 00:09:36.290 --> 00:09:36.300 align:start position:0% crashed at the same time the endogenous 00:09:36.300 --> 00:09:40.550 align:start position:0% crashed at the same time the endogenous collateral<00:09:37.019> crashed<00:09:37.800> also 00:09:40.550 --> 00:09:40.560 align:start position:0% 00:09:40.560 --> 00:09:42.590 align:start position:0% um<00:09:40.680> so<00:09:41.220> so<00:09:41.399> that<00:09:41.580> that's<00:09:41.880> not<00:09:42.060> good<00:09:42.240> and<00:09:42.480> that's 00:09:42.590 --> 00:09:42.600 align:start position:0% um so so that that's not good and that's 00:09:42.600 --> 00:09:45.350 align:start position:0% um so so that that's not good and that's why<00:09:42.779> we<00:09:42.959> made<00:09:43.140> gyroscope<00:09:43.860> Reserve<00:09:44.399> pact 00:09:45.350 --> 00:09:45.360 align:start position:0% why we made gyroscope Reserve pact 00:09:45.360 --> 00:09:46.130 align:start position:0% why we made gyroscope Reserve pact um 00:09:46.130 --> 00:09:46.140 align:start position:0% um 00:09:46.140 --> 00:09:47.870 align:start position:0% um and 00:09:47.870 --> 00:09:47.880 align:start position:0% and 00:09:47.880 --> 00:09:50.269 align:start position:0% and the<00:09:48.600> basic<00:09:48.899> idea<00:09:49.320> of<00:09:49.620> what<00:09:49.860> I<00:09:49.980> want<00:09:50.100> to<00:09:50.160> talk 00:09:50.269 --> 00:09:50.279 align:start position:0% the basic idea of what I want to talk 00:09:50.279 --> 00:09:52.670 align:start position:0% the basic idea of what I want to talk about<00:09:50.459> today<00:09:50.820> is<00:09:51.779> maybe<00:09:52.080> we<00:09:52.260> should<00:09:52.500> think 00:09:52.670 --> 00:09:52.680 align:start position:0% about today is maybe we should think 00:09:52.680 --> 00:09:54.530 align:start position:0% about today is maybe we should think about<00:09:52.860> the<00:09:53.339> Redemption<00:09:53.820> curve<00:09:54.120> as<00:09:54.240> a<00:09:54.420> design 00:09:54.530 --> 00:09:54.540 align:start position:0% about the Redemption curve as a design 00:09:54.540 --> 00:09:57.710 align:start position:0% about the Redemption curve as a design problem<00:09:54.980> and<00:09:55.980> maybe<00:09:56.160> we<00:09:56.519> should<00:09:56.760> choose<00:09:57.540> a 00:09:57.710 --> 00:09:57.720 align:start position:0% problem and maybe we should choose a 00:09:57.720 --> 00:09:59.509 align:start position:0% problem and maybe we should choose a Redemption<00:09:58.080> curve<00:09:58.380> that<00:09:58.560> we<00:09:58.740> think<00:09:58.860> is<00:09:59.100> useful 00:09:59.509 --> 00:09:59.519 align:start position:0% Redemption curve that we think is useful 00:09:59.519 --> 00:10:01.370 align:start position:0% Redemption curve that we think is useful and<00:09:59.820> reasonable<00:10:00.180> and<00:10:00.839> then<00:10:00.959> we<00:10:01.140> go<00:10:01.260> and 00:10:01.370 --> 00:10:01.380 align:start position:0% and reasonable and then we go and 00:10:01.380 --> 00:10:02.930 align:start position:0% and reasonable and then we go and Implement<00:10:01.800> that<00:10:02.040> in<00:10:02.279> our<00:10:02.459> primary<00:10:02.760> Market 00:10:02.930 --> 00:10:02.940 align:start position:0% Implement that in our primary Market 00:10:02.940 --> 00:10:04.910 align:start position:0% Implement that in our primary Market maker 00:10:04.910 --> 00:10:04.920 align:start position:0% maker 00:10:04.920 --> 00:10:06.889 align:start position:0% maker um<00:10:04.980> so<00:10:05.459> the<00:10:05.700> the<00:10:05.820> basic<00:10:06.240> design<00:10:06.360> is<00:10:06.600> going<00:10:06.779> to 00:10:06.889 --> 00:10:06.899 align:start position:0% um so the the basic design is going to 00:10:06.899 --> 00:10:08.210 align:start position:0% um so the the basic design is going to look<00:10:07.019> like<00:10:07.200> this<00:10:07.380> right<00:10:07.560> you<00:10:07.800> remember<00:10:07.920> this 00:10:08.210 --> 00:10:08.220 align:start position:0% look like this right you remember this 00:10:08.220 --> 00:10:09.310 align:start position:0% look like this right you remember this picture 00:10:09.310 --> 00:10:09.320 align:start position:0% picture 00:10:09.320 --> 00:10:11.570 align:start position:0% picture and<00:10:10.320> we're<00:10:10.500> assuming<00:10:10.860> that<00:10:10.980> the<00:10:11.160> assets<00:10:11.399> here 00:10:11.570 --> 00:10:11.580 align:start position:0% and we're assuming that the assets here 00:10:11.580 --> 00:10:13.130 align:start position:0% and we're assuming that the assets here are<00:10:11.760> exogenous<00:10:12.180> so<00:10:12.360> we<00:10:12.480> don't<00:10:12.600> need<00:10:12.720> to<00:10:12.899> worry 00:10:13.130 --> 00:10:13.140 align:start position:0% are exogenous so we don't need to worry 00:10:13.140 --> 00:10:15.170 align:start position:0% are exogenous so we don't need to worry about<00:10:13.320> these<00:10:13.560> feedback<00:10:13.860> effects<00:10:14.339> but<00:10:14.820> what<00:10:15.060> do 00:10:15.170 --> 00:10:15.180 align:start position:0% about these feedback effects but what do 00:10:15.180 --> 00:10:17.090 align:start position:0% about these feedback effects but what do you<00:10:15.300> want<00:10:15.420> to<00:10:15.540> do<00:10:15.600> if<00:10:15.899> the<00:10:16.080> system<00:10:16.320> is<00:10:16.860> under 00:10:17.090 --> 00:10:17.100 align:start position:0% you want to do if the system is under 00:10:17.100 --> 00:10:20.870 align:start position:0% you want to do if the system is under collateralized<00:10:17.880> or<00:10:18.240> illiquid 00:10:20.870 --> 00:10:20.880 align:start position:0% 00:10:20.880 --> 00:10:22.670 align:start position:0% um<00:10:20.940> and<00:10:21.180> we<00:10:21.300> have<00:10:21.420> like<00:10:21.600> like<00:10:21.839> I<00:10:22.380> want<00:10:22.500> to<00:10:22.560> give 00:10:22.670 --> 00:10:22.680 align:start position:0% um and we have like like I want to give 00:10:22.680 --> 00:10:24.650 align:start position:0% um and we have like like I want to give you<00:10:22.740> these<00:10:22.980> results<00:10:23.100> in<00:10:23.459> three<00:10:23.640> parts 00:10:24.650 --> 00:10:24.660 align:start position:0% you these results in three parts 00:10:24.660 --> 00:10:26.030 align:start position:0% you these results in three parts um<00:10:24.720> first<00:10:25.019> we<00:10:25.260> thought<00:10:25.440> about<00:10:25.560> what<00:10:25.860> are 00:10:26.030 --> 00:10:26.040 align:start position:0% um first we thought about what are 00:10:26.040 --> 00:10:28.250 align:start position:0% um first we thought about what are actually<00:10:26.160> disadrata<00:10:27.060> for<00:10:27.300> a<00:10:27.540> good<00:10:27.839> uh 00:10:28.250 --> 00:10:28.260 align:start position:0% actually disadrata for a good uh 00:10:28.260 --> 00:10:29.750 align:start position:0% actually disadrata for a good uh Redemption<00:10:28.680> curve<00:10:28.920> what<00:10:29.100> do<00:10:29.339> we<00:10:29.399> really<00:10:29.519> want 00:10:29.750 --> 00:10:29.760 align:start position:0% Redemption curve what do we really want 00:10:29.760 --> 00:10:31.790 align:start position:0% Redemption curve what do we really want and<00:10:30.600> then<00:10:30.779> I'm<00:10:30.899> going<00:10:31.019> to<00:10:31.200> show<00:10:31.260> you<00:10:31.380> one<00:10:31.620> such 00:10:31.790 --> 00:10:31.800 align:start position:0% and then I'm going to show you one such 00:10:31.800 --> 00:10:33.949 align:start position:0% and then I'm going to show you one such curve<00:10:32.160> that<00:10:32.459> satisfies<00:10:32.820> the<00:10:33.000> Digital<00:10:33.540> Data 00:10:33.949 --> 00:10:33.959 align:start position:0% curve that satisfies the Digital Data 00:10:33.959 --> 00:10:35.930 align:start position:0% curve that satisfies the Digital Data and<00:10:34.380> then<00:10:34.500> I'm<00:10:34.620> gonna<00:10:34.740> talk<00:10:34.980> to<00:10:35.160> you<00:10:35.279> about<00:10:35.580> how 00:10:35.930 --> 00:10:35.940 align:start position:0% and then I'm gonna talk to you about how 00:10:35.940 --> 00:10:37.610 align:start position:0% and then I'm gonna talk to you about how to<00:10:36.000> actually<00:10:36.180> Implement<00:10:36.660> that<00:10:36.899> because<00:10:37.320> as 00:10:37.610 --> 00:10:37.620 align:start position:0% to actually Implement that because as 00:10:37.620 --> 00:10:39.530 align:start position:0% to actually Implement that because as you<00:10:37.800> remember<00:10:37.920> the<00:10:38.880> Redemption<00:10:39.300> curve 00:10:39.530 --> 00:10:39.540 align:start position:0% you remember the Redemption curve 00:10:39.540 --> 00:10:41.630 align:start position:0% you remember the Redemption curve assumes<00:10:39.959> that<00:10:40.200> no<00:10:40.560> Market<00:10:40.740> condition<00:10:41.040> changed 00:10:41.630 --> 00:10:41.640 align:start position:0% assumes that no Market condition changed 00:10:41.640 --> 00:10:43.250 align:start position:0% assumes that no Market condition changed over<00:10:41.700> time<00:10:42.000> and<00:10:42.540> of<00:10:42.720> course<00:10:42.839> that<00:10:43.080> doesn't 00:10:43.250 --> 00:10:43.260 align:start position:0% over time and of course that doesn't 00:10:43.260 --> 00:10:45.829 align:start position:0% over time and of course that doesn't happen<00:10:43.500> in<00:10:43.680> reality<00:10:44.040> so<00:10:44.940> this<00:10:45.300> step<00:10:45.480> from 00:10:45.829 --> 00:10:45.839 align:start position:0% happen in reality so this step from 00:10:45.839 --> 00:10:48.110 align:start position:0% happen in reality so this step from picking<00:10:46.740> a<00:10:46.920> curve<00:10:47.160> and<00:10:47.339> then<00:10:47.519> implementing<00:10:47.940> is 00:10:48.110 --> 00:10:48.120 align:start position:0% picking a curve and then implementing is 00:10:48.120 --> 00:10:49.850 align:start position:0% picking a curve and then implementing is is<00:10:48.420> making<00:10:48.720> it<00:10:48.959> Dynamic<00:10:49.380> and<00:10:49.500> this<00:10:49.680> is<00:10:49.800> going 00:10:49.850 --> 00:10:49.860 align:start position:0% is making it Dynamic and this is going 00:10:49.860 --> 00:10:51.590 align:start position:0% is making it Dynamic and this is going to<00:10:49.920> lead<00:10:50.040> to<00:10:50.220> this<00:10:50.399> type<00:10:50.760> of<00:10:50.880> dynamic<00:10:51.240> bonding 00:10:51.590 --> 00:10:51.600 align:start position:0% to lead to this type of dynamic bonding 00:10:51.600 --> 00:10:52.790 align:start position:0% to lead to this type of dynamic bonding curve<00:10:51.839> if<00:10:51.959> you<00:10:52.079> want<00:10:52.200> to<00:10:52.260> think<00:10:52.380> about<00:10:52.440> it<00:10:52.680> like 00:10:52.790 --> 00:10:52.800 align:start position:0% curve if you want to think about it like 00:10:52.800 --> 00:10:55.490 align:start position:0% curve if you want to think about it like that 00:10:55.490 --> 00:10:55.500 align:start position:0% 00:10:55.500 --> 00:10:57.170 align:start position:0% um<00:10:55.560> great<00:10:55.860> let's<00:10:56.100> first<00:10:56.279> think<00:10:56.519> about<00:10:56.640> what<00:10:57.060> we 00:10:57.170 --> 00:10:57.180 align:start position:0% um great let's first think about what we 00:10:57.180 --> 00:10:59.630 align:start position:0% um great let's first think about what we would<00:10:57.420> ideally<00:10:57.839> want<00:10:58.260> of<00:10:58.560> our<00:10:58.860> Redemption 00:10:59.630 --> 00:10:59.640 align:start position:0% would ideally want of our Redemption 00:10:59.640 --> 00:11:01.130 align:start position:0% would ideally want of our Redemption curve 00:11:01.130 --> 00:11:01.140 align:start position:0% curve 00:11:01.140 --> 00:11:03.769 align:start position:0% curve um<00:11:01.519> first<00:11:02.519> thing<00:11:02.700> I<00:11:02.880> want<00:11:03.000> to<00:11:03.180> I<00:11:03.420> want<00:11:03.540> to<00:11:03.660> note 00:11:03.769 --> 00:11:03.779 align:start position:0% um first thing I want to I want to note 00:11:03.779 --> 00:11:05.630 align:start position:0% um first thing I want to I want to note is<00:11:04.019> that<00:11:04.260> probably<00:11:04.800> your<00:11:05.040> collateralization 00:11:05.630 --> 00:11:05.640 align:start position:0% is that probably your collateralization 00:11:05.640 --> 00:11:08.449 align:start position:0% is that probably your collateralization should<00:11:06.120> be<00:11:06.560> should<00:11:07.560> stay<00:11:07.740> above<00:11:08.100> some<00:11:08.220> lower 00:11:08.449 --> 00:11:08.459 align:start position:0% should be should stay above some lower 00:11:08.459 --> 00:11:11.150 align:start position:0% should be should stay above some lower bound<00:11:08.700> your<00:11:09.360> Redemption<00:11:10.019> shift<00:11:10.260> Redemption 00:11:11.150 --> 00:11:11.160 align:start position:0% bound your Redemption shift Redemption 00:11:11.160 --> 00:11:13.850 align:start position:0% bound your Redemption shift Redemption curve<00:11:11.459> should<00:11:11.640> not<00:11:11.880> exhaust<00:11:12.300> your<00:11:13.019> reserve<00:11:13.500> if 00:11:13.850 --> 00:11:13.860 align:start position:0% curve should not exhaust your reserve if 00:11:13.860 --> 00:11:15.410 align:start position:0% curve should not exhaust your reserve if that's<00:11:13.980> at<00:11:14.220> all<00:11:14.399> possible<00:11:14.760> and<00:11:15.180> the<00:11:15.300> reason 00:11:15.410 --> 00:11:15.420 align:start position:0% that's at all possible and the reason 00:11:15.420 --> 00:11:17.030 align:start position:0% that's at all possible and the reason for<00:11:15.600> that<00:11:15.779> is<00:11:15.959> to<00:11:16.079> enable<00:11:16.380> the<00:11:16.560> system<00:11:16.740> to 00:11:17.030 --> 00:11:17.040 align:start position:0% for that is to enable the system to 00:11:17.040 --> 00:11:19.370 align:start position:0% for that is to enable the system to recover<00:11:17.399> later<00:11:18.000> you<00:11:18.480> if<00:11:18.839> you<00:11:18.959> exhaust<00:11:19.200> your 00:11:19.370 --> 00:11:19.380 align:start position:0% recover later you if you exhaust your 00:11:19.380 --> 00:11:21.829 align:start position:0% recover later you if you exhaust your reserve<00:11:19.740> you're<00:11:19.920> basically<00:11:20.420> destroying<00:11:21.420> your 00:11:21.829 --> 00:11:21.839 align:start position:0% reserve you're basically destroying your 00:11:21.839 --> 00:11:23.329 align:start position:0% reserve you're basically destroying your your<00:11:22.140> system 00:11:23.329 --> 00:11:23.339 align:start position:0% your system 00:11:23.339 --> 00:11:25.550 align:start position:0% your system and<00:11:23.820> that's<00:11:24.000> bad<00:11:24.240> and<00:11:25.140> then<00:11:25.260> you<00:11:25.380> probably 00:11:25.550 --> 00:11:25.560 align:start position:0% and that's bad and then you probably 00:11:25.560 --> 00:11:27.110 align:start position:0% and that's bad and then you probably also<00:11:25.920> want<00:11:26.040> the<00:11:26.220> Redemption<00:11:26.579> price<00:11:26.760> to<00:11:27.000> stay 00:11:27.110 --> 00:11:27.120 align:start position:0% also want the Redemption price to stay 00:11:27.120 --> 00:11:29.389 align:start position:0% also want the Redemption price to stay above<00:11:27.360> a<00:11:27.480> lower<00:11:27.600> bound<00:11:27.860> if<00:11:28.860> that's<00:11:29.040> possible 00:11:29.389 --> 00:11:29.399 align:start position:0% above a lower bound if that's possible 00:11:29.399 --> 00:11:31.550 align:start position:0% above a lower bound if that's possible to<00:11:29.760> support<00:11:30.000> the<00:11:30.300> peg<00:11:30.600> at<00:11:31.079> least<00:11:31.200> to<00:11:31.380> some 00:11:31.550 --> 00:11:31.560 align:start position:0% to support the peg at least to some 00:11:31.560 --> 00:11:33.530 align:start position:0% to support the peg at least to some degree 00:11:33.530 --> 00:11:33.540 align:start position:0% degree 00:11:33.540 --> 00:11:35.449 align:start position:0% degree um<00:11:33.600> of<00:11:34.079> course<00:11:34.200> this<00:11:34.440> is<00:11:34.620> Trivial<00:11:34.920> we<00:11:35.160> usually 00:11:35.449 --> 00:11:35.459 align:start position:0% um of course this is Trivial we usually 00:11:35.459 --> 00:11:37.250 align:start position:0% um of course this is Trivial we usually want<00:11:35.700> our<00:11:36.000> stable<00:11:36.240> count<00:11:36.420> to<00:11:36.660> be<00:11:36.720> stable<00:11:36.899> at<00:11:37.079> a 00:11:37.250 --> 00:11:37.260 align:start position:0% want our stable count to be stable at a 00:11:37.260 --> 00:11:39.710 align:start position:0% want our stable count to be stable at a dollar<00:11:37.820> you<00:11:38.820> probably<00:11:38.940> want<00:11:39.180> some<00:11:39.420> kind<00:11:39.600> of 00:11:39.710 --> 00:11:39.720 align:start position:0% dollar you probably want some kind of 00:11:39.720 --> 00:11:41.509 align:start position:0% dollar you probably want some kind of continuity<00:11:40.380> of<00:11:40.680> that<00:11:40.860> curve<00:11:41.160> you<00:11:41.399> probably 00:11:41.509 --> 00:11:41.519 align:start position:0% continuity of that curve you probably 00:11:41.519 --> 00:11:44.870 align:start position:0% continuity of that curve you probably don't<00:11:41.700> want<00:11:41.880> these<00:11:42.180> abrupt<00:11:42.720> crashes<00:11:43.200> and<00:11:44.640> um<00:11:44.640> I 00:11:44.870 --> 00:11:44.880 align:start position:0% don't want these abrupt crashes and um I 00:11:44.880 --> 00:11:46.250 align:start position:0% don't want these abrupt crashes and um I would<00:11:45.000> say<00:11:45.120> that<00:11:45.300> the<00:11:45.540> main<00:11:45.660> reason<00:11:45.839> for<00:11:46.079> that 00:11:46.250 --> 00:11:46.260 align:start position:0% would say that the main reason for that 00:11:46.260 --> 00:11:48.590 align:start position:0% would say that the main reason for that is<00:11:46.680> uh<00:11:46.980> to<00:11:47.220> prevent<00:11:47.459> speculation<00:11:48.060> because 00:11:48.590 --> 00:11:48.600 align:start position:0% is uh to prevent speculation because 00:11:48.600 --> 00:11:51.530 align:start position:0% is uh to prevent speculation because these<00:11:49.440> kind<00:11:49.560> of<00:11:49.680> discontinuous<00:11:50.339> crashes<00:11:50.940> are 00:11:51.530 --> 00:11:51.540 align:start position:0% these kind of discontinuous crashes are 00:11:51.540 --> 00:11:53.150 align:start position:0% these kind of discontinuous crashes are something<00:11:51.779> people<00:11:52.019> could<00:11:52.320> speculate<00:11:52.800> on<00:11:52.980> very 00:11:53.150 --> 00:11:53.160 align:start position:0% something people could speculate on very 00:11:53.160 --> 00:11:55.730 align:start position:0% something people could speculate on very easily<00:11:53.640> and<00:11:54.540> that<00:11:54.779> could<00:11:54.959> also<00:11:55.140> lead<00:11:55.260> to<00:11:55.440> like 00:11:55.730 --> 00:11:55.740 align:start position:0% easily and that could also lead to like 00:11:55.740 --> 00:11:58.730 align:start position:0% easily and that could also lead to like all<00:11:55.860> kinds<00:11:56.100> of<00:11:56.160> Market<00:11:56.339> upheavals 00:11:58.730 --> 00:11:58.740 align:start position:0% all kinds of Market upheavals 00:11:58.740 --> 00:11:59.690 align:start position:0% all kinds of Market upheavals um 00:11:59.690 --> 00:11:59.700 align:start position:0% um 00:11:59.700 --> 00:12:01.370 align:start position:0% um and<00:12:00.180> and<00:12:00.300> then<00:12:00.540> this<00:12:00.779> is<00:12:00.839> like<00:12:01.019> a<00:12:01.140> little<00:12:01.260> bit 00:12:01.370 --> 00:12:01.380 align:start position:0% and and then this is like a little bit 00:12:01.380 --> 00:12:03.230 align:start position:0% and and then this is like a little bit of<00:12:01.500> a<00:12:01.620> bonus<00:12:01.980> but<00:12:02.519> you<00:12:02.640> want<00:12:02.760> your<00:12:02.880> Redemption 00:12:03.230 --> 00:12:03.240 align:start position:0% of a bonus but you want your Redemption 00:12:03.240 --> 00:12:06.110 align:start position:0% of a bonus but you want your Redemption curve<00:12:03.420> to<00:12:03.600> be<00:12:03.720> easy<00:12:03.959> to<00:12:04.260> use<00:12:04.500> so<00:12:05.399> probably<00:12:05.700> what 00:12:06.110 --> 00:12:06.120 align:start position:0% curve to be easy to use so probably what 00:12:06.120 --> 00:12:07.370 align:start position:0% curve to be easy to use so probably what you<00:12:06.240> want<00:12:06.420> is 00:12:07.370 --> 00:12:07.380 align:start position:0% you want is 00:12:07.380 --> 00:12:09.650 align:start position:0% you want is um you<00:12:07.680> want<00:12:07.800> the<00:12:07.980> execution<00:12:08.700> if<00:12:09.060> you<00:12:09.240> redeem 00:12:09.650 --> 00:12:09.660 align:start position:0% um you want the execution if you redeem 00:12:09.660 --> 00:12:11.930 align:start position:0% um you want the execution if you redeem a<00:12:10.260> certain<00:12:10.560> amount<00:12:10.740> of<00:12:10.920> a<00:12:11.459> certain<00:12:11.640> amount<00:12:11.760> of 00:12:11.930 --> 00:12:11.940 align:start position:0% a certain amount of a certain amount of 00:12:11.940 --> 00:12:13.970 align:start position:0% a certain amount of a certain amount of stable<00:12:12.540> coins<00:12:12.899> our<00:12:13.079> stable<00:12:13.380> coins<00:12:13.680> can<00:12:13.860> be 00:12:13.970 --> 00:12:13.980 align:start position:0% stable coins our stable coins can be 00:12:13.980 --> 00:12:16.730 align:start position:0% stable coins our stable coins can be called<00:12:14.100> dials<00:12:14.760> I<00:12:15.120> told<00:12:15.300> you<00:12:15.480> for<00:12:15.600> that 00:12:16.730 --> 00:12:16.740 align:start position:0% called dials I told you for that 00:12:16.740 --> 00:12:18.650 align:start position:0% called dials I told you for that um you<00:12:17.100> probably<00:12:17.279> want<00:12:17.459> that<00:12:17.700> to<00:12:18.060> be<00:12:18.240> easy<00:12:18.420> and 00:12:18.650 --> 00:12:18.660 align:start position:0% um you probably want that to be easy and 00:12:18.660 --> 00:12:20.449 align:start position:0% um you probably want that to be easy and especially<00:12:18.959> you<00:12:19.140> don't<00:12:19.260> want<00:12:19.560> there<00:12:20.040> to<00:12:20.220> be<00:12:20.339> an 00:12:20.449 --> 00:12:20.459 align:start position:0% especially you don't want there to be an 00:12:20.459 --> 00:12:22.190 align:start position:0% especially you don't want there to be an incentive<00:12:20.820> to<00:12:21.000> subdivide<00:12:21.540> your<00:12:21.720> redemptions 00:12:22.190 --> 00:12:22.200 align:start position:0% incentive to subdivide your redemptions 00:12:22.200 --> 00:12:23.870 align:start position:0% incentive to subdivide your redemptions and<00:12:22.500> to<00:12:22.620> be<00:12:22.740> somehow<00:12:23.040> clever<00:12:23.279> about<00:12:23.519> the<00:12:23.760> way 00:12:23.870 --> 00:12:23.880 align:start position:0% and to be somehow clever about the way 00:12:23.880 --> 00:12:27.710 align:start position:0% and to be somehow clever about the way how<00:12:24.240> people<00:12:24.480> redeem 00:12:27.710 --> 00:12:27.720 align:start position:0% 00:12:27.720 --> 00:12:30.110 align:start position:0% um<00:12:27.779> we<00:12:28.380> have<00:12:28.500> like<00:12:28.680> a<00:12:28.800> few<00:12:28.920> bonus<00:12:29.279> desiderata 00:12:30.110 --> 00:12:30.120 align:start position:0% um we have like a few bonus desiderata 00:12:30.120 --> 00:12:33.769 align:start position:0% um we have like a few bonus desiderata that<00:12:30.899> are<00:12:31.920> um<00:12:31.980> with<00:12:32.519> respect<00:12:32.820> to<00:12:33.120> like<00:12:33.420> several 00:12:33.769 --> 00:12:33.779 align:start position:0% that are um with respect to like several 00:12:33.779 --> 00:12:36.710 align:start position:0% that are um with respect to like several transactions<00:12:34.380> or<00:12:34.680> several<00:12:35.160> blocks 00:12:36.710 --> 00:12:36.720 align:start position:0% transactions or several blocks 00:12:36.720 --> 00:12:38.750 align:start position:0% transactions or several blocks um<00:12:36.839> you<00:12:37.200> probably<00:12:37.320> want<00:12:37.620> your<00:12:37.860> the<00:12:38.160> reserve 00:12:38.750 --> 00:12:38.760 align:start position:0% um you probably want your the reserve 00:12:38.760 --> 00:12:41.150 align:start position:0% um you probably want your the reserve exhaustion<00:12:39.060> to<00:12:39.300> take<00:12:39.480> a<00:12:39.660> long<00:12:39.779> time<00:12:40.140> unless<00:12:40.980> of 00:12:41.150 --> 00:12:41.160 align:start position:0% exhaustion to take a long time unless of 00:12:41.160 --> 00:12:43.670 align:start position:0% exhaustion to take a long time unless of course<00:12:41.220> you<00:12:41.399> reserve<00:12:41.820> just<00:12:42.000> the<00:12:42.420> scratches<00:12:42.959> so 00:12:43.670 --> 00:12:43.680 align:start position:0% course you reserve just the scratches so 00:12:43.680 --> 00:12:46.610 align:start position:0% course you reserve just the scratches so the<00:12:43.920> system<00:12:44.100> should<00:12:44.940> uh<00:12:45.779> also<00:12:46.139> kind<00:12:46.440> of<00:12:46.560> think 00:12:46.610 --> 00:12:46.620 align:start position:0% the system should uh also kind of think 00:12:46.620 --> 00:12:48.050 align:start position:0% the system should uh also kind of think about<00:12:46.800> what<00:12:47.100> what<00:12:47.279> happens<00:12:47.519> what<00:12:47.880> happens 00:12:48.050 --> 00:12:48.060 align:start position:0% about what what happens what happens 00:12:48.060 --> 00:12:49.190 align:start position:0% about what what happens what happens tomorrow<00:12:48.360> what<00:12:48.660> happens<00:12:48.779> when<00:12:49.019> the<00:12:49.079> system 00:12:49.190 --> 00:12:49.200 align:start position:0% tomorrow what happens when the system 00:12:49.200 --> 00:12:51.110 align:start position:0% tomorrow what happens when the system runs<00:12:49.560> continuously 00:12:51.110 --> 00:12:51.120 align:start position:0% runs continuously 00:12:51.120 --> 00:12:52.250 align:start position:0% runs continuously um<00:12:51.180> you<00:12:51.420> should<00:12:51.540> be<00:12:51.600> able<00:12:51.720> to<00:12:51.839> regain<00:12:52.079> your 00:12:52.250 --> 00:12:52.260 align:start position:0% um you should be able to regain your 00:12:52.260 --> 00:12:53.930 align:start position:0% um you should be able to regain your pack<00:12:52.440> and<00:12:53.100> of<00:12:53.220> course<00:12:53.339> you<00:12:53.459> need<00:12:53.639> to<00:12:53.700> implement 00:12:53.930 --> 00:12:53.940 align:start position:0% pack and of course you need to implement 00:12:53.940 --> 00:12:57.530 align:start position:0% pack and of course you need to implement the<00:12:54.120> whole<00:12:54.300> thing<00:12:54.480> on<00:12:54.600> chain 00:12:57.530 --> 00:12:57.540 align:start position:0% 00:12:57.540 --> 00:12:59.810 align:start position:0% um<00:12:57.660> ah<00:12:58.019> yes<00:12:58.200> the<00:12:58.560> first<00:12:58.740> math<00:12:58.920> equation<00:12:59.399> so 00:12:59.810 --> 00:12:59.820 align:start position:0% um ah yes the first math equation so 00:12:59.820 --> 00:13:02.690 align:start position:0% um ah yes the first math equation so before<00:13:00.600> I<00:13:00.959> show<00:13:01.200> you<00:13:01.380> how<00:13:02.040> we<00:13:02.220> implement<00:13:02.519> this 00:13:02.690 --> 00:13:02.700 align:start position:0% before I show you how we implement this 00:13:02.700 --> 00:13:04.870 align:start position:0% before I show you how we implement this I<00:13:03.060> have<00:13:03.180> to<00:13:03.300> introduce<00:13:03.720> this<00:13:03.899> nice<00:13:04.079> equation 00:13:04.870 --> 00:13:04.880 align:start position:0% I have to introduce this nice equation 00:13:04.880 --> 00:13:07.069 align:start position:0% I have to introduce this nice equation we<00:13:05.880> assume<00:13:06.240> that<00:13:06.360> the<00:13:06.540> Redemption<00:13:06.899> pressure 00:13:07.069 --> 00:13:07.079 align:start position:0% we assume that the Redemption pressure 00:13:07.079 --> 00:13:11.509 align:start position:0% we assume that the Redemption pressure is<00:13:07.380> computed<00:13:07.740> as<00:13:07.860> a<00:13:08.040> Time<00:13:08.100> discounted<00:13:08.639> some 00:13:11.509 --> 00:13:11.519 align:start position:0% is computed as a Time discounted some 00:13:11.519 --> 00:13:13.009 align:start position:0% is computed as a Time discounted some if<00:13:12.060> you<00:13:12.180> don't<00:13:12.360> care<00:13:12.480> about<00:13:12.600> that<00:13:12.839> that's 00:13:13.009 --> 00:13:13.019 align:start position:0% if you don't care about that that's 00:13:13.019 --> 00:13:15.170 align:start position:0% if you don't care about that that's totally<00:13:13.320> fine 00:13:15.170 --> 00:13:15.180 align:start position:0% totally fine 00:13:15.180 --> 00:13:17.090 align:start position:0% totally fine and<00:13:15.600> now<00:13:15.720> I'm<00:13:15.899> going<00:13:16.019> to<00:13:16.139> show<00:13:16.260> you<00:13:16.440> one 00:13:17.090 --> 00:13:17.100 align:start position:0% and now I'm going to show you one 00:13:17.100 --> 00:13:20.810 align:start position:0% and now I'm going to show you one simplified<00:13:17.959> design<00:13:19.040> that<00:13:20.040> satisfies<00:13:20.459> almost 00:13:20.810 --> 00:13:20.820 align:start position:0% simplified design that satisfies almost 00:13:20.820 --> 00:13:22.730 align:start position:0% simplified design that satisfies almost all<00:13:21.060> of<00:13:21.180> the<00:13:21.360> desireata 00:13:22.730 --> 00:13:22.740 align:start position:0% all of the desireata 00:13:22.740 --> 00:13:24.590 align:start position:0% all of the desireata and<00:13:23.279> this<00:13:23.639> is<00:13:23.700> a<00:13:23.880> simplified<00:13:24.180> Redemption 00:13:24.590 --> 00:13:24.600 align:start position:0% and this is a simplified Redemption 00:13:24.600 --> 00:13:26.269 align:start position:0% and this is a simplified Redemption curve<00:13:24.839> we're<00:13:24.959> not<00:13:25.079> using<00:13:25.320> this<00:13:25.440> but<00:13:25.680> it's<00:13:25.860> good 00:13:26.269 --> 00:13:26.279 align:start position:0% curve we're not using this but it's good 00:13:26.279 --> 00:13:29.389 align:start position:0% curve we're not using this but it's good for<00:13:26.399> explanation<00:13:26.959> so<00:13:27.959> what's<00:13:28.560> a<00:13:28.860> curve<00:13:29.220> does 00:13:29.389 --> 00:13:29.399 align:start position:0% for explanation so what's a curve does 00:13:29.399 --> 00:13:31.810 align:start position:0% for explanation so what's a curve does is<00:13:29.760> that<00:13:30.120> we<00:13:30.779> support 00:13:31.810 --> 00:13:31.820 align:start position:0% is that we support 00:13:31.820 --> 00:13:34.610 align:start position:0% is that we support a<00:13:32.820> price<00:13:33.240> of<00:13:33.420> one<00:13:33.600> dollar<00:13:33.779> so<00:13:34.019> people<00:13:34.200> can 00:13:34.610 --> 00:13:34.620 align:start position:0% a price of one dollar so people can 00:13:34.620 --> 00:13:37.430 align:start position:0% a price of one dollar so people can redeem<00:13:34.920> at<00:13:35.160> a<00:13:35.279> price<00:13:35.399> of<00:13:35.579> one<00:13:35.700> dollar 00:13:37.430 --> 00:13:37.440 align:start position:0% redeem at a price of one dollar 00:13:37.440 --> 00:13:38.509 align:start position:0% redeem at a price of one dollar um 00:13:38.509 --> 00:13:38.519 align:start position:0% um 00:13:38.519 --> 00:13:40.610 align:start position:0% um up<00:13:39.120> until<00:13:39.240> a<00:13:39.600> certain<00:13:39.720> amount<00:13:40.019> of<00:13:40.200> redemption 00:13:40.610 --> 00:13:40.620 align:start position:0% up until a certain amount of redemption 00:13:40.620 --> 00:13:43.670 align:start position:0% up until a certain amount of redemption so<00:13:40.800> on<00:13:40.980> this<00:13:41.100> axis<00:13:41.399> we<00:13:41.579> have<00:13:41.700> redemptions 00:13:43.670 --> 00:13:43.680 align:start position:0% so on this axis we have redemptions 00:13:43.680 --> 00:13:44.290 align:start position:0% so on this axis we have redemptions um 00:13:44.290 --> 00:13:44.300 align:start position:0% um 00:13:44.300 --> 00:13:47.210 align:start position:0% um and<00:13:45.300> then 00:13:47.210 --> 00:13:47.220 align:start position:0% and then 00:13:47.220 --> 00:13:50.150 align:start position:0% and then we<00:13:47.820> are<00:13:48.000> gonna<00:13:48.240> drop<00:13:49.139> the<00:13:49.380> Redemption<00:13:49.800> price 00:13:50.150 --> 00:13:50.160 align:start position:0% we are gonna drop the Redemption price 00:13:50.160 --> 00:13:52.550 align:start position:0% we are gonna drop the Redemption price so<00:13:50.940> that<00:13:51.120> the<00:13:51.360> Redemption<00:13:51.839> price<00:13:52.019> is<00:13:52.200> equal<00:13:52.320> to 00:13:52.550 --> 00:13:52.560 align:start position:0% so that the Redemption price is equal to 00:13:52.560 --> 00:13:54.710 align:start position:0% so that the Redemption price is equal to the<00:13:52.680> collateralization<00:13:53.279> ratio<00:13:53.880> and<00:13:54.420> this<00:13:54.540> is 00:13:54.710 --> 00:13:54.720 align:start position:0% the collateralization ratio and this is 00:13:54.720 --> 00:13:56.449 align:start position:0% the collateralization ratio and this is a<00:13:54.899> sustainable<00:13:55.320> way<00:13:55.680> of<00:13:55.800> doing<00:13:55.980> it<00:13:56.160> so<00:13:56.279> for 00:13:56.449 --> 00:13:56.459 align:start position:0% a sustainable way of doing it so for 00:13:56.459 --> 00:13:57.590 align:start position:0% a sustainable way of doing it so for example<00:13:56.639> if<00:13:56.880> your<00:13:57.000> system<00:13:57.300> is<00:13:57.480> 80 00:13:57.590 --> 00:13:57.600 align:start position:0% example if your system is 80 00:13:57.600 --> 00:13:59.509 align:start position:0% example if your system is 80 collateralized<00:13:58.560> the<00:13:58.920> Redemption<00:13:59.339> price 00:13:59.509 --> 00:13:59.519 align:start position:0% collateralized the Redemption price 00:13:59.519 --> 00:14:01.009 align:start position:0% collateralized the Redemption price would<00:13:59.700> be<00:13:59.820> 80<00:13:59.940> cents<00:14:00.240> and<00:14:00.420> you<00:14:00.540> can<00:14:00.660> just<00:14:00.779> do 00:14:01.009 --> 00:14:01.019 align:start position:0% would be 80 cents and you can just do 00:14:01.019 --> 00:14:02.389 align:start position:0% would be 80 cents and you can just do that<00:14:01.139> indefinitely<00:14:01.560> and<00:14:01.680> redeem<00:14:02.040> the<00:14:02.220> rest<00:14:02.279> of 00:14:02.389 --> 00:14:02.399 align:start position:0% that indefinitely and redeem the rest of 00:14:02.399 --> 00:14:05.269 align:start position:0% that indefinitely and redeem the rest of the<00:14:02.579> money<00:14:03.180> and<00:14:03.480> of<00:14:03.600> course<00:14:03.720> this<00:14:03.899> has<00:14:04.139> all<00:14:05.100> of 00:14:05.269 --> 00:14:05.279 align:start position:0% the money and of course this has all of 00:14:05.279 --> 00:14:08.870 align:start position:0% the money and of course this has all of the<00:14:05.459> nice<00:14:05.899> properties<00:14:06.899> almost<00:14:07.320> all<00:14:07.620> of<00:14:07.740> them 00:14:08.870 --> 00:14:08.880 align:start position:0% the nice properties almost all of them 00:14:08.880 --> 00:14:11.990 align:start position:0% the nice properties almost all of them um<00:14:09.000> you<00:14:09.779> don't<00:14:10.079> run<00:14:10.440> out<00:14:10.740> of<00:14:10.920> you<00:14:11.760> don't<00:14:11.880> run 00:14:11.990 --> 00:14:12.000 align:start position:0% um you don't run out of you don't run 00:14:12.000 --> 00:14:14.090 align:start position:0% um you don't run out of you don't run out<00:14:12.240> of<00:14:12.360> Reserves 00:14:14.090 --> 00:14:14.100 align:start position:0% out of Reserves 00:14:14.100 --> 00:14:16.370 align:start position:0% out of Reserves um<00:14:14.160> you<00:14:14.519> can<00:14:14.639> actually<00:14:15.079> configure<00:14:16.079> a 00:14:16.370 --> 00:14:16.380 align:start position:0% um you can actually configure a 00:14:16.380 --> 00:14:17.870 align:start position:0% um you can actually configure a trade-off<00:14:16.740> that<00:14:16.920> exists<00:14:17.220> here<00:14:17.339> of<00:14:17.579> course<00:14:17.700> the 00:14:17.870 --> 00:14:17.880 align:start position:0% trade-off that exists here of course the 00:14:17.880 --> 00:14:20.530 align:start position:0% trade-off that exists here of course the longer<00:14:18.240> you<00:14:18.540> support<00:14:18.839> a<00:14:19.200> pack<00:14:19.380> of<00:14:19.620> one<00:14:19.800> dollar 00:14:20.530 --> 00:14:20.540 align:start position:0% longer you support a pack of one dollar 00:14:20.540 --> 00:14:22.550 align:start position:0% longer you support a pack of one dollar the<00:14:21.540> lower<00:14:21.720> your<00:14:22.200> eventual 00:14:22.550 --> 00:14:22.560 align:start position:0% the lower your eventual 00:14:22.560 --> 00:14:24.350 align:start position:0% the lower your eventual collateralization<00:14:23.100> is<00:14:23.399> going<00:14:23.639> to<00:14:23.760> be<00:14:23.820> but 00:14:24.350 --> 00:14:24.360 align:start position:0% collateralization is going to be but 00:14:24.360 --> 00:14:28.370 align:start position:0% collateralization is going to be but it's<00:14:24.540> something<00:14:24.839> that<00:14:25.500> you<00:14:26.100> can<00:14:26.220> choose 00:14:28.370 --> 00:14:28.380 align:start position:0% it's something that you can choose 00:14:28.380 --> 00:14:31.009 align:start position:0% it's something that you can choose um<00:14:28.639> exactly<00:14:29.639> so<00:14:29.940> so<00:14:30.180> we<00:14:30.420> have<00:14:30.720> like<00:14:30.839> the 00:14:31.009 --> 00:14:31.019 align:start position:0% um exactly so so we have like the 00:14:31.019 --> 00:14:34.250 align:start position:0% um exactly so so we have like the long-term<00:14:31.500> survivability<00:14:31.980> of<00:14:32.279> the<00:14:32.399> system 00:14:34.250 --> 00:14:34.260 align:start position:0% long-term survivability of the system 00:14:34.260 --> 00:14:35.509 align:start position:0% long-term survivability of the system um<00:14:34.380> because<00:14:34.620> you<00:14:34.800> might<00:14:34.980> actually<00:14:35.160> want<00:14:35.339> to<00:14:35.459> do 00:14:35.509 --> 00:14:35.519 align:start position:0% um because you might actually want to do 00:14:35.519 --> 00:14:36.710 align:start position:0% um because you might actually want to do this<00:14:35.700> like<00:14:35.940> this<00:14:36.120> would<00:14:36.300> be<00:14:36.420> like<00:14:36.540> the 00:14:36.710 --> 00:14:36.720 align:start position:0% this like this would be like the 00:14:36.720 --> 00:14:38.389 align:start position:0% this like this would be like the equation 00:14:38.389 --> 00:14:38.399 align:start position:0% equation 00:14:38.399 --> 00:14:39.230 align:start position:0% equation um 00:14:39.230 --> 00:14:39.240 align:start position:0% um 00:14:39.240 --> 00:14:41.689 align:start position:0% um but<00:14:39.959> of<00:14:40.260> course<00:14:40.380> the<00:14:40.620> problem<00:14:40.800> is<00:14:41.100> that<00:14:41.399> this 00:14:41.689 --> 00:14:41.699 align:start position:0% but of course the problem is that this 00:14:41.699 --> 00:14:43.430 align:start position:0% but of course the problem is that this is<00:14:41.820> like<00:14:42.000> this<00:14:42.480> ugly<00:14:42.600> discontinuous<00:14:43.199> jump 00:14:43.430 --> 00:14:43.440 align:start position:0% is like this ugly discontinuous jump 00:14:43.440 --> 00:14:45.650 align:start position:0% is like this ugly discontinuous jump that<00:14:43.620> I<00:14:43.800> mentioned<00:14:44.040> before<00:14:44.220> and<00:14:45.060> so<00:14:45.300> what<00:14:45.480> we 00:14:45.650 --> 00:14:45.660 align:start position:0% that I mentioned before and so what we 00:14:45.660 --> 00:14:48.110 align:start position:0% that I mentioned before and so what we really<00:14:45.779> do<00:14:46.079> is<00:14:46.500> that<00:14:46.800> we<00:14:47.040> introduce<00:14:47.339> a<00:14:47.459> linear 00:14:48.110 --> 00:14:48.120 align:start position:0% really do is that we introduce a linear 00:14:48.120 --> 00:14:52.129 align:start position:0% really do is that we introduce a linear segment<00:14:48.360> there<00:14:48.660> looks<00:14:49.440> like<00:14:49.500> this 00:14:52.129 --> 00:14:52.139 align:start position:0% 00:14:52.139 --> 00:14:54.290 align:start position:0% um<00:14:52.199> where<00:14:53.100> the<00:14:53.339> price<00:14:53.579> would<00:14:53.880> first<00:14:54.000> be<00:14:54.180> a 00:14:54.290 --> 00:14:54.300 align:start position:0% um where the price would first be a 00:14:54.300 --> 00:14:55.490 align:start position:0% um where the price would first be a dollar<00:14:54.420> then<00:14:54.720> it<00:14:54.899> would 00:14:55.490 --> 00:14:55.500 align:start position:0% dollar then it would 00:14:55.500 --> 00:14:57.530 align:start position:0% dollar then it would decrease<00:14:56.100> as<00:14:56.459> more<00:14:56.639> and<00:14:56.820> more<00:14:56.940> is<00:14:57.060> redeemed 00:14:57.530 --> 00:14:57.540 align:start position:0% decrease as more and more is redeemed 00:14:57.540 --> 00:14:59.329 align:start position:0% decrease as more and more is redeemed and<00:14:58.199> then 00:14:59.329 --> 00:14:59.339 align:start position:0% and then 00:14:59.339 --> 00:14:59.870 align:start position:0% and then um 00:14:59.870 --> 00:14:59.880 align:start position:0% um 00:14:59.880 --> 00:15:03.769 align:start position:0% um if<00:15:00.300> it<00:15:00.420> if<00:15:00.600> it<00:15:00.779> has<00:15:00.839> reached<00:15:01.380> a<00:15:02.220> point<00:15:02.579> where<00:15:03.540> we 00:15:03.769 --> 00:15:03.779 align:start position:0% if it if it has reached a point where we 00:15:03.779 --> 00:15:05.329 align:start position:0% if it if it has reached a point where we have<00:15:03.959> a<00:15:04.199> sustainable<00:15:04.680> collateralization 00:15:05.329 --> 00:15:05.339 align:start position:0% have a sustainable collateralization 00:15:05.339 --> 00:15:09.050 align:start position:0% have a sustainable collateralization ratio<00:15:05.820> it<00:15:06.000> would<00:15:06.180> just<00:15:06.300> give<00:15:06.480> you<00:15:06.600> that<00:15:06.839> price 00:15:09.050 --> 00:15:09.060 align:start position:0% ratio it would just give you that price 00:15:09.060 --> 00:15:11.509 align:start position:0% ratio it would just give you that price um<00:15:09.120> and<00:15:09.660> if<00:15:09.839> you<00:15:09.959> want<00:15:10.079> to<00:15:10.199> do<00:15:10.320> that<00:15:10.500> the<00:15:11.339> mouth 00:15:11.509 --> 00:15:11.519 align:start position:0% um and if you want to do that the mouth 00:15:11.519 --> 00:15:15.110 align:start position:0% um and if you want to do that the mouth to<00:15:11.820> do<00:15:11.940> this<00:15:12.120> looks<00:15:13.019> like<00:15:13.199> this 00:15:15.110 --> 00:15:15.120 align:start position:0% to do this looks like this 00:15:15.120 --> 00:15:17.389 align:start position:0% to do this looks like this um<00:15:15.240> but<00:15:15.720> it's<00:15:15.839> like<00:15:16.079> it's<00:15:16.380> fine<00:15:16.740> right<00:15:17.100> it's 00:15:17.389 --> 00:15:17.399 align:start position:0% um but it's like it's fine right it's 00:15:17.399 --> 00:15:19.490 align:start position:0% um but it's like it's fine right it's fine<00:15:17.639> they're<00:15:17.880> like<00:15:18.060> case<00:15:18.300> distinctions<00:15:19.139> and 00:15:19.490 --> 00:15:19.500 align:start position:0% fine they're like case distinctions and 00:15:19.500 --> 00:15:22.269 align:start position:0% fine they're like case distinctions and fractions<00:15:20.100> but<00:15:20.279> it's<00:15:20.459> not<00:15:20.760> that<00:15:21.060> bad 00:15:22.269 --> 00:15:22.279 align:start position:0% fractions but it's not that bad 00:15:22.279 --> 00:15:26.389 align:start position:0% fractions but it's not that bad and<00:15:23.279> one<00:15:24.180> thing<00:15:24.360> you<00:15:24.600> you<00:15:24.899> can<00:15:25.620> see<00:15:25.860> here<00:15:26.100> is 00:15:26.389 --> 00:15:26.399 align:start position:0% and one thing you you can see here is 00:15:26.399 --> 00:15:29.569 align:start position:0% and one thing you you can see here is that<00:15:26.779> governance<00:15:27.779> can<00:15:28.440> configure<00:15:29.040> this<00:15:29.220> using 00:15:29.569 --> 00:15:29.579 align:start position:0% that governance can configure this using 00:15:29.579 --> 00:15:33.189 align:start position:0% that governance can configure this using some<00:15:29.760> hyper<00:15:30.060> parameters<00:15:30.660> so<00:15:31.699> you<00:15:32.699> can<00:15:32.820> say 00:15:33.189 --> 00:15:33.199 align:start position:0% some hyper parameters so you can say 00:15:33.199 --> 00:15:35.810 align:start position:0% some hyper parameters so you can say what<00:15:34.199> is<00:15:34.380> the<00:15:34.740> minimum<00:15:35.279> collateralization 00:15:35.810 --> 00:15:35.820 align:start position:0% what is the minimum collateralization 00:15:35.820 --> 00:15:38.269 align:start position:0% what is the minimum collateralization that<00:15:36.120> I<00:15:36.240> want<00:15:36.360> of<00:15:36.540> my<00:15:36.660> system 00:15:38.269 --> 00:15:38.279 align:start position:0% that I want of my system 00:15:38.279 --> 00:15:39.470 align:start position:0% that I want of my system um<00:15:38.339> and<00:15:38.579> this<00:15:38.699> is<00:15:38.820> something<00:15:38.940> that<00:15:39.120> governance 00:15:39.470 --> 00:15:39.480 align:start position:0% um and this is something that governance 00:15:39.480 --> 00:15:40.670 align:start position:0% um and this is something that governance would<00:15:39.660> set<00:15:39.899> because<00:15:40.079> it's<00:15:40.320> actually<00:15:40.560> a 00:15:40.670 --> 00:15:40.680 align:start position:0% would set because it's actually a 00:15:40.680 --> 00:15:43.129 align:start position:0% would set because it's actually a meaningful<00:15:41.040> parameter<00:15:41.579> you<00:15:42.240> can<00:15:42.360> say 00:15:43.129 --> 00:15:43.139 align:start position:0% meaningful parameter you can say 00:15:43.139 --> 00:15:45.050 align:start position:0% meaningful parameter you can say um what<00:15:43.560> is<00:15:43.740> the<00:15:44.040> steepness<00:15:44.519> here<00:15:44.760> that<00:15:45.000> I'm 00:15:45.050 --> 00:15:45.060 align:start position:0% um what is the steepness here that I'm 00:15:45.060 --> 00:15:47.689 align:start position:0% um what is the steepness here that I'm willing<00:15:45.360> to<00:15:45.540> tolerate<00:15:45.980> another<00:15:46.980> parameter 00:15:47.689 --> 00:15:47.699 align:start position:0% willing to tolerate another parameter 00:15:47.699 --> 00:15:49.790 align:start position:0% willing to tolerate another parameter and<00:15:48.180> then<00:15:48.360> if<00:15:48.899> you<00:15:48.959> solve<00:15:49.260> this<00:15:49.320> equation<00:15:49.560> it's 00:15:49.790 --> 00:15:49.800 align:start position:0% and then if you solve this equation it's 00:15:49.800 --> 00:15:51.829 align:start position:0% and then if you solve this equation it's going<00:15:49.980> to<00:15:50.160> respond<00:15:50.519> autonomously<00:15:51.180> to<00:15:51.660> these 00:15:51.829 --> 00:15:51.839 align:start position:0% going to respond autonomously to these 00:15:51.839 --> 00:15:55.129 align:start position:0% going to respond autonomously to these type<00:15:52.019> of<00:15:52.199> parameters 00:15:55.129 --> 00:15:55.139 align:start position:0% 00:15:55.139 --> 00:15:57.530 align:start position:0% um 00:15:57.530 --> 00:15:57.540 align:start position:0% 00:15:57.540 --> 00:16:01.069 align:start position:0% now<00:15:58.260> this<00:15:58.980> curve<00:15:59.339> is<00:15:59.459> beautiful 00:16:01.069 --> 00:16:01.079 align:start position:0% now this curve is beautiful 00:16:01.079 --> 00:16:03.710 align:start position:0% now this curve is beautiful but<00:16:01.560> it<00:16:01.800> has<00:16:02.100> a<00:16:02.699> problem<00:16:03.060> it's<00:16:03.360> not<00:16:03.540> very 00:16:03.710 --> 00:16:03.720 align:start position:0% but it has a problem it's not very 00:16:03.720 --> 00:16:06.590 align:start position:0% but it has a problem it's not very useful<00:16:04.160> because<00:16:05.160> it<00:16:05.699> doesn't<00:16:05.880> reflect 00:16:06.590 --> 00:16:06.600 align:start position:0% useful because it doesn't reflect 00:16:06.600 --> 00:16:08.569 align:start position:0% useful because it doesn't reflect reality<00:16:06.959> because<00:16:07.199> we<00:16:07.500> assume<00:16:07.920> there<00:16:08.220> is<00:16:08.399> a 00:16:08.569 --> 00:16:08.579 align:start position:0% reality because we assume there is a 00:16:08.579 --> 00:16:11.150 align:start position:0% reality because we assume there is a Redemption<00:16:08.940> pressure<00:16:09.120> of<00:16:09.360> zero 00:16:11.150 --> 00:16:11.160 align:start position:0% Redemption pressure of zero 00:16:11.160 --> 00:16:13.250 align:start position:0% Redemption pressure of zero um we<00:16:11.459> have<00:16:11.639> some<00:16:11.940> kind<00:16:12.120> of<00:16:12.300> initial 00:16:13.250 --> 00:16:13.260 align:start position:0% um we have some kind of initial 00:16:13.260 --> 00:16:15.769 align:start position:0% um we have some kind of initial collateralization<00:16:13.920> of<00:16:14.220> the<00:16:14.399> system<00:16:14.699> which<00:16:15.600> we 00:16:15.769 --> 00:16:15.779 align:start position:0% collateralization of the system which we 00:16:15.779 --> 00:16:18.650 align:start position:0% collateralization of the system which we call<00:16:15.959> an<00:16:16.199> anchor<00:16:16.560> rate<00:16:16.800> or<00:16:17.459> we<00:16:17.820> could<00:16:17.940> we<00:16:18.180> label 00:16:18.650 --> 00:16:18.660 align:start position:0% call an anchor rate or we could we label 00:16:18.660 --> 00:16:20.870 align:start position:0% call an anchor rate or we could we label this<00:16:18.779> like<00:16:18.959> ra 00:16:20.870 --> 00:16:20.880 align:start position:0% this like ra 00:16:20.880 --> 00:16:21.590 align:start position:0% this like ra um 00:16:21.590 --> 00:16:21.600 align:start position:0% um 00:16:21.600 --> 00:16:23.509 align:start position:0% um and<00:16:22.199> then<00:16:22.380> you<00:16:22.500> start<00:16:22.680> from<00:16:22.860> there<00:16:23.040> the<00:16:23.279> curve 00:16:23.509 --> 00:16:23.519 align:start position:0% and then you start from there the curve 00:16:23.519 --> 00:16:25.310 align:start position:0% and then you start from there the curve tells<00:16:23.880> you<00:16:23.940> what<00:16:24.180> happens<00:16:24.300> when<00:16:24.600> you<00:16:24.779> start<00:16:24.959> at 00:16:25.310 --> 00:16:25.320 align:start position:0% tells you what happens when you start at 00:16:25.320 --> 00:16:27.170 align:start position:0% tells you what happens when you start at zero<00:16:25.680> Redemption<00:16:26.100> pressure<00:16:26.339> at<00:16:26.760> the<00:16:26.880> anchor 00:16:27.170 --> 00:16:27.180 align:start position:0% zero Redemption pressure at the anchor 00:16:27.180 --> 00:16:29.509 align:start position:0% zero Redemption pressure at the anchor rate<00:16:27.360> nothing<00:16:27.959> changes<00:16:28.440> in<00:16:28.560> the<00:16:28.740> market 00:16:29.509 --> 00:16:29.519 align:start position:0% rate nothing changes in the market 00:16:29.519 --> 00:16:31.689 align:start position:0% rate nothing changes in the market to<00:16:30.360> implement<00:16:30.600> that 00:16:31.689 --> 00:16:31.699 align:start position:0% to implement that 00:16:31.699 --> 00:16:34.670 align:start position:0% to implement that we<00:16:32.699> need<00:16:32.880> to<00:16:33.180> live<00:16:33.540> in<00:16:33.720> a<00:16:33.899> situation<00:16:34.199> where<00:16:34.500> the 00:16:34.670 --> 00:16:34.680 align:start position:0% we need to live in a situation where the 00:16:34.680 --> 00:16:36.350 align:start position:0% we need to live in a situation where the market<00:16:34.800> will<00:16:35.160> of<00:16:35.339> course<00:16:35.459> change<00:16:35.760> and<00:16:36.060> we<00:16:36.240> can 00:16:36.350 --> 00:16:36.360 align:start position:0% market will of course change and we can 00:16:36.360 --> 00:16:38.569 align:start position:0% market will of course change and we can still<00:16:36.540> use<00:16:36.720> this<00:16:37.019> curve<00:16:37.800> and<00:16:38.160> this<00:16:38.339> is<00:16:38.459> what 00:16:38.569 --> 00:16:38.579 align:start position:0% still use this curve and this is what 00:16:38.579 --> 00:16:40.310 align:start position:0% still use this curve and this is what I'm<00:16:38.699> going<00:16:38.820> to<00:16:38.940> talk<00:16:39.000> about<00:16:39.120> today 00:16:40.310 --> 00:16:40.320 align:start position:0% I'm going to talk about today 00:16:40.320 --> 00:16:43.069 align:start position:0% I'm going to talk about today so<00:16:40.800> the<00:16:41.040> goal<00:16:41.279> is<00:16:41.600> make<00:16:42.600> the<00:16:42.779> whole<00:16:42.899> thing 00:16:43.069 --> 00:16:43.079 align:start position:0% so the goal is make the whole thing 00:16:43.079 --> 00:16:44.810 align:start position:0% so the goal is make the whole thing dynamic 00:16:44.810 --> 00:16:44.820 align:start position:0% dynamic 00:16:44.820 --> 00:16:46.610 align:start position:0% dynamic um<00:16:44.880> make<00:16:45.540> it<00:16:45.660> react<00:16:45.959> to<00:16:46.079> the<00:16:46.199> current<00:16:46.320> market 00:16:46.610 --> 00:16:46.620 align:start position:0% um make it react to the current market 00:16:46.620 --> 00:16:47.990 align:start position:0% um make it react to the current market state 00:16:47.990 --> 00:16:48.000 align:start position:0% state 00:16:48.000 --> 00:16:49.910 align:start position:0% state and 00:16:49.910 --> 00:16:49.920 align:start position:0% and 00:16:49.920 --> 00:16:51.829 align:start position:0% and I'm<00:16:50.100> gonna<00:16:50.399> show<00:16:50.820> you<00:16:50.940> how<00:16:51.300> to<00:16:51.420> do<00:16:51.600> it 00:16:51.829 --> 00:16:51.839 align:start position:0% I'm gonna show you how to do it 00:16:51.839 --> 00:16:55.090 align:start position:0% I'm gonna show you how to do it hopefully<00:16:52.740> in<00:16:52.980> a<00:16:53.160> picture 00:16:55.090 --> 00:16:55.100 align:start position:0% hopefully in a picture 00:16:55.100 --> 00:16:59.829 align:start position:0% hopefully in a picture and<00:16:56.100> how<00:16:56.519> we<00:16:56.639> do<00:16:56.880> it<00:16:57.120> goes<00:16:57.839> as<00:16:57.959> follows 00:16:59.829 --> 00:16:59.839 align:start position:0% and how we do it goes as follows 00:16:59.839 --> 00:17:03.889 align:start position:0% and how we do it goes as follows I<00:17:00.839> showed<00:17:01.199> you<00:17:01.320> this<00:17:02.220> curve 00:17:03.889 --> 00:17:03.899 align:start position:0% I showed you this curve 00:17:03.899 --> 00:17:06.409 align:start position:0% I showed you this curve and<00:17:04.620> if<00:17:04.980> you<00:17:05.220> know<00:17:05.459> your<00:17:06.059> anchor 00:17:06.409 --> 00:17:06.419 align:start position:0% and if you know your anchor 00:17:06.419 --> 00:17:09.610 align:start position:0% and if you know your anchor collateralization<00:17:07.079> which<00:17:07.860> is<00:17:08.100> on<00:17:08.220> this<00:17:08.400> axis 00:17:09.610 --> 00:17:09.620 align:start position:0% collateralization which is on this axis 00:17:09.620 --> 00:17:12.949 align:start position:0% collateralization which is on this axis and<00:17:10.620> you<00:17:10.799> know<00:17:11.360> a<00:17:12.360> certain<00:17:12.600> amount<00:17:12.839> of 00:17:12.949 --> 00:17:12.959 align:start position:0% and you know a certain amount of 00:17:12.959 --> 00:17:14.210 align:start position:0% and you know a certain amount of redemption<00:17:13.380> pressure 00:17:14.210 --> 00:17:14.220 align:start position:0% redemption pressure 00:17:14.220 --> 00:17:16.010 align:start position:0% redemption pressure and<00:17:14.699> you<00:17:14.880> can<00:17:15.000> go<00:17:15.059> and<00:17:15.240> integrate<00:17:15.600> the<00:17:15.720> curve 00:17:16.010 --> 00:17:16.020 align:start position:0% and you can go and integrate the curve 00:17:16.020 --> 00:17:17.630 align:start position:0% and you can go and integrate the curve from<00:17:16.140> before<00:17:16.319> and<00:17:16.919> it's<00:17:17.040> going<00:17:17.220> to<00:17:17.339> tell<00:17:17.459> you 00:17:17.630 --> 00:17:17.640 align:start position:0% from before and it's going to tell you 00:17:17.640 --> 00:17:19.069 align:start position:0% from before and it's going to tell you what<00:17:17.880> your<00:17:18.059> collateralization<00:17:18.600> at<00:17:18.959> that 00:17:19.069 --> 00:17:19.079 align:start position:0% what your collateralization at that 00:17:19.079 --> 00:17:22.429 align:start position:0% what your collateralization at that point<00:17:19.260> is<00:17:19.380> going<00:17:19.559> to<00:17:19.679> be<00:17:19.740> and<00:17:19.919> that's<00:17:20.100> up<00:17:20.280> here 00:17:22.429 --> 00:17:22.439 align:start position:0% point is going to be and that's up here 00:17:22.439 --> 00:17:23.150 align:start position:0% point is going to be and that's up here um 00:17:23.150 --> 00:17:23.160 align:start position:0% um 00:17:23.160 --> 00:17:25.689 align:start position:0% um and<00:17:23.880> now<00:17:24.059> if<00:17:24.240> we<00:17:24.360> do<00:17:24.480> that<00:17:24.660> for<00:17:24.900> all<00:17:25.079> possible 00:17:25.689 --> 00:17:25.699 align:start position:0% and now if we do that for all possible 00:17:25.699 --> 00:17:28.549 align:start position:0% and now if we do that for all possible sorry<00:17:26.699> anchor<00:17:27.240> values<00:17:27.600> we<00:17:28.199> get<00:17:28.380> a 00:17:28.549 --> 00:17:28.559 align:start position:0% sorry anchor values we get a 00:17:28.559 --> 00:17:31.730 align:start position:0% sorry anchor values we get a three-dimensional<00:17:29.100> surface 00:17:31.730 --> 00:17:31.740 align:start position:0% 00:17:31.740 --> 00:17:32.630 align:start position:0% um 00:17:32.630 --> 00:17:32.640 align:start position:0% um 00:17:32.640 --> 00:17:34.669 align:start position:0% um and 00:17:34.669 --> 00:17:34.679 align:start position:0% and 00:17:34.679 --> 00:17:37.789 align:start position:0% and what<00:17:35.520> we<00:17:36.299> just<00:17:36.480> discussed<00:17:36.960> was<00:17:37.140> if<00:17:37.440> you<00:17:37.620> know 00:17:37.789 --> 00:17:37.799 align:start position:0% what we just discussed was if you know 00:17:37.799 --> 00:17:41.270 align:start position:0% what we just discussed was if you know this<00:17:38.039> and<00:17:38.580> this<00:17:38.880> you<00:17:39.539> can<00:17:39.720> compute<00:17:40.320> this<00:17:40.440> but 00:17:41.270 --> 00:17:41.280 align:start position:0% this and this you can compute this but 00:17:41.280 --> 00:17:43.130 align:start position:0% this and this you can compute this but it<00:17:41.460> turns<00:17:41.760> out<00:17:41.820> that<00:17:42.120> you<00:17:42.299> can<00:17:42.419> also<00:17:42.660> do<00:17:42.840> it<00:17:43.020> in 00:17:43.130 --> 00:17:43.140 align:start position:0% it turns out that you can also do it in 00:17:43.140 --> 00:17:45.230 align:start position:0% it turns out that you can also do it in reverse<00:17:43.500> so<00:17:43.799> if<00:17:44.039> you<00:17:44.220> know<00:17:44.400> the<00:17:45.059> current 00:17:45.230 --> 00:17:45.240 align:start position:0% reverse so if you know the current 00:17:45.240 --> 00:17:46.970 align:start position:0% reverse so if you know the current collateralization<00:17:45.900> of<00:17:46.200> the<00:17:46.320> system<00:17:46.500> on<00:17:46.860> this 00:17:46.970 --> 00:17:46.980 align:start position:0% collateralization of the system on this 00:17:46.980 --> 00:17:49.250 align:start position:0% collateralization of the system on this axis<00:17:47.340> and<00:17:48.179> the<00:17:48.360> current<00:17:48.539> Redemption<00:17:49.020> pressure 00:17:49.250 --> 00:17:49.260 align:start position:0% axis and the current Redemption pressure 00:17:49.260 --> 00:17:50.690 align:start position:0% axis and the current Redemption pressure here<00:17:49.679> which<00:17:49.980> is<00:17:50.100> something<00:17:50.280> that<00:17:50.460> you<00:17:50.580> can 00:17:50.690 --> 00:17:50.700 align:start position:0% here which is something that you can 00:17:50.700 --> 00:17:52.789 align:start position:0% here which is something that you can just<00:17:50.820> observe<00:17:51.299> in<00:17:51.480> in<00:17:51.660> real<00:17:51.900> time 00:17:52.789 --> 00:17:52.799 align:start position:0% just observe in in real time 00:17:52.799 --> 00:17:55.190 align:start position:0% just observe in in real time then<00:17:53.280> you<00:17:53.460> can<00:17:53.580> actually<00:17:53.760> compute<00:17:54.419> this 00:17:55.190 --> 00:17:55.200 align:start position:0% then you can actually compute this 00:17:55.200 --> 00:17:58.250 align:start position:0% then you can actually compute this initial<00:17:56.120> collateralization<00:17:57.120> ratio<00:17:57.720> which<00:17:58.080> of 00:17:58.250 --> 00:17:58.260 align:start position:0% initial collateralization ratio which of 00:17:58.260 --> 00:17:59.990 align:start position:0% initial collateralization ratio which of course<00:17:58.380> at<00:17:58.559> this<00:17:58.679> point<00:17:58.860> is<00:17:59.160> a<00:17:59.400> purely<00:17:59.640> it's 00:17:59.990 --> 00:18:00.000 align:start position:0% course at this point is a purely it's 00:18:00.000 --> 00:18:02.210 align:start position:0% course at this point is a purely it's purely<00:18:00.299> a<00:18:00.480> modeling<00:18:00.840> tool<00:18:01.140> but<00:18:01.620> it<00:18:01.799> tells<00:18:02.100> you 00:18:02.210 --> 00:18:02.220 align:start position:0% purely a modeling tool but it tells you 00:18:02.220 --> 00:18:04.730 align:start position:0% purely a modeling tool but it tells you if<00:18:03.120> nothing<00:18:03.480> had<00:18:03.780> happened<00:18:04.080> in<00:18:04.380> the<00:18:04.559> market 00:18:04.730 --> 00:18:04.740 align:start position:0% if nothing had happened in the market 00:18:04.740 --> 00:18:07.789 align:start position:0% if nothing had happened in the market and<00:18:05.520> we<00:18:05.760> are<00:18:05.940> now<00:18:06.120> at<00:18:06.360> the<00:18:06.480> state<00:18:06.660> where<00:18:07.260> should 00:18:07.789 --> 00:18:07.799 align:start position:0% and we are now at the state where should 00:18:07.799 --> 00:18:10.070 align:start position:0% and we are now at the state where should we<00:18:07.980> have<00:18:08.220> started<00:18:08.640> if<00:18:08.940> this<00:18:09.120> model<00:18:09.360> was<00:18:09.780> true 00:18:10.070 --> 00:18:10.080 align:start position:0% we have started if this model was true 00:18:10.080 --> 00:18:13.310 align:start position:0% we have started if this model was true okay<00:18:10.440> so<00:18:10.740> so<00:18:11.039> many<00:18:11.280> complicated<00:18:11.820> words<00:18:12.120> here 00:18:13.310 --> 00:18:13.320 align:start position:0% okay so so many complicated words here 00:18:13.320 --> 00:18:15.529 align:start position:0% okay so so many complicated words here um<00:18:13.919> and<00:18:14.280> so<00:18:14.400> basically<00:18:14.700> this<00:18:14.880> theorem<00:18:15.240> says 00:18:15.529 --> 00:18:15.539 align:start position:0% um and so basically this theorem says 00:18:15.539 --> 00:18:17.690 align:start position:0% um and so basically this theorem says that<00:18:15.660> you<00:18:15.840> can<00:18:15.960> reconstruct<00:18:16.860> that<00:18:17.100> it's<00:18:17.400> a 00:18:17.690 --> 00:18:17.700 align:start position:0% that you can reconstruct that it's a 00:18:17.700 --> 00:18:19.490 align:start position:0% that you can reconstruct that it's a monotonistic<00:18:18.419> argument 00:18:19.490 --> 00:18:19.500 align:start position:0% monotonistic argument 00:18:19.500 --> 00:18:22.250 align:start position:0% monotonistic argument um<00:18:19.559> it's<00:18:20.100> it's<00:18:20.280> fine 00:18:22.250 --> 00:18:22.260 align:start position:0% um it's it's fine 00:18:22.260 --> 00:18:24.110 align:start position:0% um it's it's fine and<00:18:22.860> and<00:18:23.100> so<00:18:23.340> then<00:18:23.520> once<00:18:23.820> you<00:18:23.880> have<00:18:24.000> the 00:18:24.110 --> 00:18:24.120 align:start position:0% and and so then once you have the 00:18:24.120 --> 00:18:26.690 align:start position:0% and and so then once you have the initial<00:18:24.360> State<00:18:24.799> we<00:18:25.799> can<00:18:25.919> offer<00:18:26.280> Redemption 00:18:26.690 --> 00:18:26.700 align:start position:0% initial State we can offer Redemption 00:18:26.700 --> 00:18:28.010 align:start position:0% initial State we can offer Redemption prices 00:18:28.010 --> 00:18:28.020 align:start position:0% prices 00:18:28.020 --> 00:18:31.730 align:start position:0% prices um based<00:18:28.799> on<00:18:29.160> uh<00:18:30.000> based<00:18:30.900> on<00:18:30.960> this<00:18:31.200> Redemption 00:18:31.730 --> 00:18:31.740 align:start position:0% um based on uh based on this Redemption 00:18:31.740 --> 00:18:33.710 align:start position:0% um based on uh based on this Redemption curve<00:18:32.100> as<00:18:32.220> a<00:18:32.400> model 00:18:33.710 --> 00:18:33.720 align:start position:0% curve as a model 00:18:33.720 --> 00:18:36.049 align:start position:0% curve as a model um and<00:18:33.900> that's<00:18:34.020> pretty<00:18:34.260> convenient<00:18:35.220> because 00:18:36.049 --> 00:18:36.059 align:start position:0% um and that's pretty convenient because 00:18:36.059 --> 00:18:37.970 align:start position:0% um and that's pretty convenient because it's<00:18:36.360> a<00:18:36.539> way<00:18:36.720> to<00:18:37.020> respond<00:18:37.380> to<00:18:37.500> current<00:18:37.740> market 00:18:37.970 --> 00:18:37.980 align:start position:0% it's a way to respond to current market 00:18:37.980 --> 00:18:39.950 align:start position:0% it's a way to respond to current market conditions<00:18:38.580> it's<00:18:39.059> completely<00:18:39.419> autonomous 00:18:39.950 --> 00:18:39.960 align:start position:0% conditions it's completely autonomous 00:18:39.960 --> 00:18:42.830 align:start position:0% conditions it's completely autonomous governance<00:18:40.559> only<00:18:40.860> has<00:18:41.160> to<00:18:41.340> set<00:18:41.840> meaningful 00:18:42.830 --> 00:18:42.840 align:start position:0% governance only has to set meaningful 00:18:42.840 --> 00:18:44.690 align:start position:0% governance only has to set meaningful hyper<00:18:43.140> parameters<00:18:43.559> it<00:18:44.039> doesn't<00:18:44.220> have<00:18:44.400> to<00:18:44.520> do 00:18:44.690 --> 00:18:44.700 align:start position:0% hyper parameters it doesn't have to do 00:18:44.700 --> 00:18:46.930 align:start position:0% hyper parameters it doesn't have to do anything<00:18:44.940> in<00:18:45.299> the<00:18:45.480> moment 00:18:46.930 --> 00:18:46.940 align:start position:0% anything in the moment 00:18:46.940 --> 00:18:49.490 align:start position:0% anything in the moment and<00:18:47.940> it's<00:18:48.120> it's<00:18:48.360> completely<00:18:48.780> predictable<00:18:49.260> for 00:18:49.490 --> 00:18:49.500 align:start position:0% and it's it's completely predictable for 00:18:49.500 --> 00:18:51.049 align:start position:0% and it's it's completely predictable for other<00:18:49.679> people<00:18:49.799> so<00:18:50.039> everyone<00:18:50.340> knows<00:18:50.760> what's 00:18:51.049 --> 00:18:51.059 align:start position:0% other people so everyone knows what's 00:18:51.059 --> 00:18:52.549 align:start position:0% other people so everyone knows what's going<00:18:51.299> to<00:18:51.419> happen<00:18:51.539> so<00:18:51.780> yeah<00:18:52.020> this<00:18:52.200> you<00:18:52.440> have 00:18:52.549 --> 00:18:52.559 align:start position:0% going to happen so yeah this you have 00:18:52.559 --> 00:18:55.010 align:start position:0% going to happen so yeah this you have this<00:18:52.679> huge<00:18:52.919> transparency<00:18:53.340> advantage<00:18:53.940> over<00:18:54.720> a 00:18:55.010 --> 00:18:55.020 align:start position:0% this huge transparency advantage over a 00:18:55.020 --> 00:18:57.409 align:start position:0% this huge transparency advantage over a system<00:18:55.260> where<00:18:56.220> governance<00:18:56.760> would<00:18:57.000> just<00:18:57.179> come 00:18:57.409 --> 00:18:57.419 align:start position:0% system where governance would just come 00:18:57.419 --> 00:19:01.250 align:start position:0% system where governance would just come in<00:18:57.660> and<00:18:58.260> then<00:18:58.820> make<00:18:59.820> a<00:19:00.000> vote<00:19:00.240> and<00:19:00.960> of<00:19:01.140> course 00:19:01.250 --> 00:19:01.260 align:start position:0% in and then make a vote and of course 00:19:01.260 --> 00:19:03.230 align:start position:0% in and then make a vote and of course other<00:19:01.980> Market<00:19:02.220> participants<00:19:02.700> have<00:19:02.940> no<00:19:03.059> idea 00:19:03.230 --> 00:19:03.240 align:start position:0% other Market participants have no idea 00:19:03.240 --> 00:19:04.549 align:start position:0% other Market participants have no idea what<00:19:03.419> the<00:19:03.600> outcome<00:19:03.780> of<00:19:03.900> this<00:19:04.080> vote<00:19:04.200> is<00:19:04.380> going 00:19:04.549 --> 00:19:04.559 align:start position:0% what the outcome of this vote is going 00:19:04.559 --> 00:19:07.310 align:start position:0% what the outcome of this vote is going to<00:19:04.679> be 00:19:07.310 --> 00:19:07.320 align:start position:0% 00:19:07.320 --> 00:19:08.690 align:start position:0% now<00:19:07.860> I<00:19:08.039> should<00:19:08.220> probably<00:19:08.340> talk<00:19:08.580> about 00:19:08.690 --> 00:19:08.700 align:start position:0% now I should probably talk about 00:19:08.700 --> 00:19:10.250 align:start position:0% now I should probably talk about implementation<00:19:09.360> because<00:19:09.720> you<00:19:10.020> might<00:19:10.140> be 00:19:10.250 --> 00:19:10.260 align:start position:0% implementation because you might be 00:19:10.260 --> 00:19:11.450 align:start position:0% implementation because you might be looking<00:19:10.380> at<00:19:10.559> the<00:19:10.679> theorem<00:19:11.039> and<00:19:11.220> you're<00:19:11.340> like 00:19:11.450 --> 00:19:11.460 align:start position:0% looking at the theorem and you're like 00:19:11.460 --> 00:19:12.830 align:start position:0% looking at the theorem and you're like yeah<00:19:11.640> this<00:19:11.880> is<00:19:12.000> great<00:19:12.120> if<00:19:12.299> you're<00:19:12.419> doing<00:19:12.600> pure 00:19:12.830 --> 00:19:12.840 align:start position:0% yeah this is great if you're doing pure 00:19:12.840 --> 00:19:13.610 align:start position:0% yeah this is great if you're doing pure math 00:19:13.610 --> 00:19:13.620 align:start position:0% math 00:19:13.620 --> 00:19:15.770 align:start position:0% math but<00:19:14.400> we're<00:19:14.520> not<00:19:14.700> doing<00:19:14.820> that<00:19:15.000> at<00:19:15.179> all<00:19:15.299> and<00:19:15.660> I'm 00:19:15.770 --> 00:19:15.780 align:start position:0% but we're not doing that at all and I'm 00:19:15.780 --> 00:19:16.610 align:start position:0% but we're not doing that at all and I'm going<00:19:15.900> to<00:19:15.960> talk<00:19:16.140> a<00:19:16.260> little<00:19:16.380> bit<00:19:16.440> about 00:19:16.610 --> 00:19:16.620 align:start position:0% going to talk a little bit about 00:19:16.620 --> 00:19:18.049 align:start position:0% going to talk a little bit about implementation 00:19:18.049 --> 00:19:18.059 align:start position:0% implementation 00:19:18.059 --> 00:19:20.630 align:start position:0% implementation and<00:19:18.660> the<00:19:18.900> implementation<00:19:19.440> works<00:19:20.100> in<00:19:20.460> two 00:19:20.630 --> 00:19:20.640 align:start position:0% and the implementation works in two 00:19:20.640 --> 00:19:24.890 align:start position:0% and the implementation works in two steps<00:19:21.059> the<00:19:21.900> first<00:19:22.140> like<00:19:22.740> core<00:19:23.039> idea<00:19:23.520> is<00:19:23.880> that 00:19:24.890 --> 00:19:24.900 align:start position:0% steps the first like core idea is that 00:19:24.900 --> 00:19:26.990 align:start position:0% steps the first like core idea is that um you<00:19:25.320> saw<00:19:25.500> you<00:19:25.799> remember<00:19:25.919> the<00:19:26.280> scary<00:19:26.520> slide 00:19:26.990 --> 00:19:27.000 align:start position:0% um you saw you remember the scary slide 00:19:27.000 --> 00:19:28.549 align:start position:0% um you saw you remember the scary slide I<00:19:27.299> showed<00:19:27.539> you<00:19:27.600> before<00:19:27.780> with<00:19:28.020> like<00:19:28.320> many 00:19:28.549 --> 00:19:28.559 align:start position:0% I showed you before with like many 00:19:28.559 --> 00:19:30.350 align:start position:0% I showed you before with like many formulas<00:19:29.100> where<00:19:29.640> everyone<00:19:29.880> in<00:19:30.120> the<00:19:30.299> room 00:19:30.350 --> 00:19:30.360 align:start position:0% formulas where everyone in the room 00:19:30.360 --> 00:19:32.330 align:start position:0% formulas where everyone in the room gasped<00:19:30.900> so<00:19:31.140> that<00:19:31.559> had<00:19:31.799> a<00:19:31.919> couple<00:19:32.039> cases 00:19:32.330 --> 00:19:32.340 align:start position:0% gasped so that had a couple cases 00:19:32.340 --> 00:19:35.150 align:start position:0% gasped so that had a couple cases stations<00:19:32.820> in<00:19:32.940> it<00:19:33.120> and<00:19:33.780> if<00:19:34.080> you<00:19:34.320> do<00:19:34.860> like<00:19:35.039> the 00:19:35.150 --> 00:19:35.160 align:start position:0% stations in it and if you do like the 00:19:35.160 --> 00:19:36.529 align:start position:0% stations in it and if you do like the cross<00:19:35.340> product<00:19:35.580> of<00:19:35.880> all<00:19:36.120> the<00:19:36.299> case 00:19:36.529 --> 00:19:36.539 align:start position:0% cross product of all the case 00:19:36.539 --> 00:19:38.270 align:start position:0% cross product of all the case distinctions<00:19:37.200> you<00:19:37.500> end<00:19:37.679> up<00:19:37.799> with<00:19:37.919> a<00:19:38.039> bunch<00:19:38.160> of 00:19:38.270 --> 00:19:38.280 align:start position:0% distinctions you end up with a bunch of 00:19:38.280 --> 00:19:40.810 align:start position:0% distinctions you end up with a bunch of regions<00:19:38.640> and<00:19:39.299> you<00:19:39.480> can<00:19:39.539> partition 00:19:40.810 --> 00:19:40.820 align:start position:0% regions and you can partition 00:19:40.820 --> 00:19:43.010 align:start position:0% regions and you can partition your<00:19:41.820> space<00:19:42.059> into<00:19:42.360> all<00:19:42.600> of<00:19:42.720> these<00:19:42.840> different 00:19:43.010 --> 00:19:43.020 align:start position:0% your space into all of these different 00:19:43.020 --> 00:19:47.510 align:start position:0% your space into all of these different regions<00:19:43.700> and<00:19:45.140> so<00:19:46.140> you<00:19:46.500> may<00:19:46.860> believe<00:19:47.100> me<00:19:47.340> that 00:19:47.510 --> 00:19:47.520 align:start position:0% regions and so you may believe me that 00:19:47.520 --> 00:19:50.150 align:start position:0% regions and so you may believe me that this<00:19:47.700> is<00:19:47.820> possible<00:19:48.179> the<00:19:49.140> theorem<00:19:49.500> is<00:19:49.740> that<00:19:49.980> you 00:19:50.150 --> 00:19:50.160 align:start position:0% this is possible the theorem is that you 00:19:50.160 --> 00:19:52.310 align:start position:0% this is possible the theorem is that you can<00:19:50.340> actually<00:19:50.520> detect<00:19:51.000> in<00:19:51.539> which<00:19:51.660> region<00:19:52.140> you 00:19:52.310 --> 00:19:52.320 align:start position:0% can actually detect in which region you 00:19:52.320 --> 00:19:54.169 align:start position:0% can actually detect in which region you are<00:19:52.500> based<00:19:53.220> on<00:19:53.280> only<00:19:53.460> the<00:19:53.760> current<00:19:53.880> market 00:19:54.169 --> 00:19:54.179 align:start position:0% are based on only the current market 00:19:54.179 --> 00:19:56.390 align:start position:0% are based on only the current market state 00:19:56.390 --> 00:19:56.400 align:start position:0% state 00:19:56.400 --> 00:19:58.490 align:start position:0% state um<00:19:56.460> and<00:19:57.360> then<00:19:57.480> it<00:19:57.600> turns<00:19:57.900> out<00:19:57.960> that<00:19:58.200> once<00:19:58.440> you 00:19:58.490 --> 00:19:58.500 align:start position:0% um and then it turns out that once you 00:19:58.500 --> 00:20:00.650 align:start position:0% um and then it turns out that once you know<00:19:58.620> in<00:19:58.740> which<00:19:58.860> region<00:19:59.160> you<00:19:59.400> are 00:20:00.650 --> 00:20:00.660 align:start position:0% know in which region you are 00:20:00.660 --> 00:20:03.169 align:start position:0% know in which region you are um<00:20:00.740> Computing<00:20:01.740> like<00:20:02.400> this<00:20:02.580> value<00:20:02.760> on<00:20:03.000> this 00:20:03.169 --> 00:20:03.179 align:start position:0% um Computing like this value on this 00:20:03.179 --> 00:20:05.330 align:start position:0% um Computing like this value on this axis<00:20:03.480> is<00:20:03.660> very<00:20:03.900> easy<00:20:04.080> it's<00:20:04.620> basically<00:20:04.980> solving 00:20:05.330 --> 00:20:05.340 align:start position:0% axis is very easy it's basically solving 00:20:05.340 --> 00:20:08.150 align:start position:0% axis is very easy it's basically solving quadratic<00:20:05.820> equations<00:20:06.120> then 00:20:08.150 --> 00:20:08.160 align:start position:0% quadratic equations then 00:20:08.160 --> 00:20:10.010 align:start position:0% quadratic equations then um<00:20:08.280> and<00:20:08.760> that<00:20:08.880> brings<00:20:09.059> us<00:20:09.240> to<00:20:09.419> the<00:20:09.660> algorithm 00:20:10.010 --> 00:20:10.020 align:start position:0% um and that brings us to the algorithm 00:20:10.020 --> 00:20:12.770 align:start position:0% um and that brings us to the algorithm so<00:20:10.500> we<00:20:10.860> detect<00:20:11.520> the<00:20:11.700> region<00:20:12.120> based<00:20:12.600> on<00:20:12.660> the 00:20:12.770 --> 00:20:12.780 align:start position:0% so we detect the region based on the 00:20:12.780 --> 00:20:15.409 align:start position:0% so we detect the region based on the current<00:20:12.960> state<00:20:13.460> we<00:20:14.460> reconstruct<00:20:14.940> the<00:20:15.120> anchor 00:20:15.409 --> 00:20:15.419 align:start position:0% current state we reconstruct the anchor 00:20:15.419 --> 00:20:18.650 align:start position:0% current state we reconstruct the anchor State<00:20:15.600> we<00:20:16.260> take<00:20:16.440> that<00:20:16.620> as<00:20:16.799> a<00:20:16.980> model<00:20:17.539> and<00:20:18.539> we 00:20:18.650 --> 00:20:18.660 align:start position:0% State we take that as a model and we 00:20:18.660 --> 00:20:20.270 align:start position:0% State we take that as a model and we compute<00:20:19.080> our<00:20:19.260> Redemption<00:20:19.679> amount<00:20:19.919> which<00:20:20.160> is 00:20:20.270 --> 00:20:20.280 align:start position:0% compute our Redemption amount which is 00:20:20.280 --> 00:20:22.490 align:start position:0% compute our Redemption amount which is basically<00:20:20.580> integrating<00:20:21.059> over<00:20:21.539> this<00:20:22.080> exact 00:20:22.490 --> 00:20:22.500 align:start position:0% basically integrating over this exact 00:20:22.500 --> 00:20:24.370 align:start position:0% basically integrating over this exact curve<00:20:22.740> I<00:20:22.919> showed<00:20:23.100> you<00:20:23.160> before 00:20:24.370 --> 00:20:24.380 align:start position:0% curve I showed you before 00:20:24.380 --> 00:20:27.230 align:start position:0% curve I showed you before and<00:20:25.380> then<00:20:25.500> when<00:20:25.740> you<00:20:25.980> like<00:20:26.400> are<00:20:26.820> being<00:20:27.120> very 00:20:27.230 --> 00:20:27.240 align:start position:0% and then when you like are being very 00:20:27.240 --> 00:20:28.909 align:start position:0% and then when you like are being very careful<00:20:27.539> and<00:20:27.660> you<00:20:27.900> count<00:20:28.080> all<00:20:28.620> the<00:20:28.679> things<00:20:28.799> you 00:20:28.909 --> 00:20:28.919 align:start position:0% careful and you count all the things you 00:20:28.919 --> 00:20:30.289 align:start position:0% careful and you count all the things you have<00:20:29.039> to<00:20:29.160> do<00:20:29.220> to<00:20:29.400> get<00:20:29.520> this<00:20:29.700> is<00:20:29.880> actually<00:20:30.120> very 00:20:30.289 --> 00:20:30.299 align:start position:0% have to do to get this is actually very 00:20:30.299 --> 00:20:31.610 align:start position:0% have to do to get this is actually very cheap<00:20:30.539> you<00:20:31.020> just<00:20:31.200> need<00:20:31.260> to<00:20:31.380> do<00:20:31.440> some 00:20:31.610 --> 00:20:31.620 align:start position:0% cheap you just need to do some 00:20:31.620 --> 00:20:36.409 align:start position:0% cheap you just need to do some arithmetic<00:20:32.220> a<00:20:32.700> little<00:20:32.820> bit<00:20:33.000> square<00:20:33.179> root 00:20:36.409 --> 00:20:36.419 align:start position:0% 00:20:36.419 --> 00:20:39.830 align:start position:0% um<00:20:36.480> right<00:20:37.520> so<00:20:38.520> this<00:20:38.940> system<00:20:39.120> has<00:20:39.360> a<00:20:39.539> number<00:20:39.660> of 00:20:39.830 --> 00:20:39.840 align:start position:0% um right so this system has a number of 00:20:39.840 --> 00:20:42.590 align:start position:0% um right so this system has a number of interesting<00:20:40.260> properties<00:20:40.679> and<00:20:41.520> I'm<00:20:42.299> going<00:20:42.480> to 00:20:42.590 --> 00:20:42.600 align:start position:0% interesting properties and I'm going to 00:20:42.600 --> 00:20:45.770 align:start position:0% interesting properties and I'm going to show<00:20:42.720> you<00:20:42.960> just<00:20:43.559> just<00:20:43.860> like<00:20:44.160> two 00:20:45.770 --> 00:20:45.780 align:start position:0% show you just just like two 00:20:45.780 --> 00:20:46.490 align:start position:0% show you just just like two um 00:20:46.490 --> 00:20:46.500 align:start position:0% um 00:20:46.500 --> 00:20:49.070 align:start position:0% um one<00:20:47.400> result<00:20:47.700> that<00:20:48.000> you<00:20:48.120> get<00:20:48.240> like<00:20:48.419> very<00:20:48.720> easily 00:20:49.070 --> 00:20:49.080 align:start position:0% one result that you get like very easily 00:20:49.080 --> 00:20:50.630 align:start position:0% one result that you get like very easily is<00:20:49.380> that<00:20:49.500> there's<00:20:49.679> no<00:20:49.799> incentive<00:20:50.160> to<00:20:50.280> split<00:20:50.520> up 00:20:50.630 --> 00:20:50.640 align:start position:0% is that there's no incentive to split up 00:20:50.640 --> 00:20:52.669 align:start position:0% is that there's no incentive to split up redemptions<00:20:51.120> and<00:20:51.960> like<00:20:52.140> mathematically 00:20:52.669 --> 00:20:52.679 align:start position:0% redemptions and like mathematically 00:20:52.679 --> 00:20:53.750 align:start position:0% redemptions and like mathematically that's<00:20:52.860> because<00:20:53.039> you're<00:20:53.280> Computing<00:20:53.640> an 00:20:53.750 --> 00:20:53.760 align:start position:0% that's because you're Computing an 00:20:53.760 --> 00:20:55.250 align:start position:0% that's because you're Computing an integral<00:20:54.120> and<00:20:54.360> you<00:20:54.539> can<00:20:54.600> always<00:20:54.720> split<00:20:55.020> up<00:20:55.140> an 00:20:55.250 --> 00:20:55.260 align:start position:0% integral and you can always split up an 00:20:55.260 --> 00:20:56.990 align:start position:0% integral and you can always split up an integral<00:20:55.559> in<00:20:55.679> different<00:20:55.860> parts<00:20:56.100> and<00:20:56.640> it 00:20:56.990 --> 00:20:57.000 align:start position:0% integral in different parts and it 00:20:57.000 --> 00:20:59.210 align:start position:0% integral in different parts and it doesn't<00:20:57.120> matter<00:20:57.559> if<00:20:58.559> you<00:20:58.679> compute<00:20:58.980> the<00:20:59.100> parts 00:20:59.210 --> 00:20:59.220 align:start position:0% doesn't matter if you compute the parts 00:20:59.220 --> 00:21:00.650 align:start position:0% doesn't matter if you compute the parts of<00:20:59.520> the<00:20:59.760> whole<00:20:59.880> thing 00:21:00.650 --> 00:21:00.660 align:start position:0% of the whole thing 00:21:00.660 --> 00:21:02.690 align:start position:0% of the whole thing so<00:21:01.380> mathematically<00:21:02.100> it's<00:21:02.280> not<00:21:02.520> very 00:21:02.690 --> 00:21:02.700 align:start position:0% so mathematically it's not very 00:21:02.700 --> 00:21:03.690 align:start position:0% so mathematically it's not very interesting 00:21:03.690 --> 00:21:03.700 align:start position:0% interesting 00:21:03.700 --> 00:21:04.130 align:start position:0% interesting [Music] 00:21:04.130 --> 00:21:04.140 align:start position:0% [Music] 00:21:04.140 --> 00:21:04.970 align:start position:0% [Music] um 00:21:04.970 --> 00:21:04.980 align:start position:0% um 00:21:04.980 --> 00:21:08.870 align:start position:0% um you<00:21:05.640> have<00:21:06.000> a<00:21:06.419> path<00:21:06.539> efficiency<00:21:07.140> result<00:21:07.880> which 00:21:08.870 --> 00:21:08.880 align:start position:0% you have a path efficiency result which 00:21:08.880 --> 00:21:11.150 align:start position:0% you have a path efficiency result which is<00:21:09.000> basically<00:21:09.360> that<00:21:09.780> and<00:21:10.620> this<00:21:10.799> is<00:21:10.919> like<00:21:11.039> a 00:21:11.150 --> 00:21:11.160 align:start position:0% is basically that and this is like a 00:21:11.160 --> 00:21:12.770 align:start position:0% is basically that and this is like a little<00:21:11.220> bit<00:21:11.400> more<00:21:11.520> interesting<00:21:11.940> that<00:21:12.600> the 00:21:12.770 --> 00:21:12.780 align:start position:0% little bit more interesting that the 00:21:12.780 --> 00:21:14.090 align:start position:0% little bit more interesting that the protocol<00:21:13.020> state<00:21:13.200> is<00:21:13.440> going<00:21:13.559> to<00:21:13.679> improve<00:21:13.919> over 00:21:14.090 --> 00:21:14.100 align:start position:0% protocol state is going to improve over 00:21:14.100 --> 00:21:17.150 align:start position:0% protocol state is going to improve over time<00:21:14.400> so<00:21:15.059> if<00:21:15.299> you<00:21:15.360> implement<00:21:15.660> the<00:21:15.900> system<00:21:16.160> your 00:21:17.150 --> 00:21:17.160 align:start position:0% time so if you implement the system your 00:21:17.160 --> 00:21:19.730 align:start position:0% time so if you implement the system your reserve<00:21:17.580> does<00:21:17.760> not<00:21:18.000> crash 00:21:19.730 --> 00:21:19.740 align:start position:0% reserve does not crash 00:21:19.740 --> 00:21:22.789 align:start position:0% reserve does not crash um<00:21:20.280> completely<00:21:20.880> to<00:21:21.120> zero 00:21:22.789 --> 00:21:22.799 align:start position:0% um completely to zero 00:21:22.799 --> 00:21:25.250 align:start position:0% um completely to zero um<00:21:22.980> and<00:21:23.340> people<00:21:23.460> just<00:21:23.760> come<00:21:23.940> and<00:21:24.120> redeem<00:21:24.480> then 00:21:25.250 --> 00:21:25.260 align:start position:0% um and people just come and redeem then 00:21:25.260 --> 00:21:27.049 align:start position:0% um and people just come and redeem then your<00:21:25.500> system<00:21:25.679> is<00:21:25.919> going<00:21:26.100> to<00:21:26.220> recapitalize 00:21:27.049 --> 00:21:27.059 align:start position:0% your system is going to recapitalize 00:21:27.059 --> 00:21:28.549 align:start position:0% your system is going to recapitalize itself<00:21:27.360> over<00:21:27.600> time<00:21:27.840> and<00:21:28.020> of<00:21:28.140> course<00:21:28.260> this<00:21:28.440> is 00:21:28.549 --> 00:21:28.559 align:start position:0% itself over time and of course this is 00:21:28.559 --> 00:21:30.590 align:start position:0% itself over time and of course this is exactly<00:21:28.919> what<00:21:29.100> we<00:21:29.280> want<00:21:29.460> we<00:21:29.820> want<00:21:30.059> long-term 00:21:30.590 --> 00:21:30.600 align:start position:0% exactly what we want we want long-term 00:21:30.600 --> 00:21:33.830 align:start position:0% exactly what we want we want long-term survivability<00:21:31.020> of<00:21:31.320> the<00:21:31.440> system 00:21:33.830 --> 00:21:33.840 align:start position:0% 00:21:33.840 --> 00:21:36.289 align:start position:0% and 00:21:36.289 --> 00:21:36.299 align:start position:0% and 00:21:36.299 --> 00:21:39.110 align:start position:0% and this<00:21:36.840> is<00:21:37.020> what<00:21:37.200> this<00:21:37.380> looks<00:21:37.679> like 00:21:39.110 --> 00:21:39.120 align:start position:0% this is what this looks like 00:21:39.120 --> 00:21:41.450 align:start position:0% this is what this looks like and<00:21:39.900> now<00:21:40.020> I<00:21:40.200> want<00:21:40.320> to<00:21:40.440> conclude 00:21:41.450 --> 00:21:41.460 align:start position:0% and now I want to conclude 00:21:41.460 --> 00:21:43.610 align:start position:0% and now I want to conclude so<00:21:42.299> if<00:21:42.419> you're<00:21:42.539> taking<00:21:42.720> away<00:21:42.960> anything<00:21:43.260> from 00:21:43.610 --> 00:21:43.620 align:start position:0% so if you're taking away anything from 00:21:43.620 --> 00:21:46.070 align:start position:0% so if you're taking away anything from this<00:21:43.740> talk<00:21:43.980> it's<00:21:44.700> that<00:21:45.059> you<00:21:45.419> can<00:21:45.539> design<00:21:45.780> your 00:21:46.070 --> 00:21:46.080 align:start position:0% this talk it's that you can design your 00:21:46.080 --> 00:21:47.270 align:start position:0% this talk it's that you can design your Redemption<00:21:46.440> curves<00:21:46.740> when<00:21:46.860> you're<00:21:46.980> building<00:21:47.100> a 00:21:47.270 --> 00:21:47.280 align:start position:0% Redemption curves when you're building a 00:21:47.280 --> 00:21:48.970 align:start position:0% Redemption curves when you're building a stablecon<00:21:47.640> system 00:21:48.970 --> 00:21:48.980 align:start position:0% stablecon system 00:21:48.980 --> 00:21:51.770 align:start position:0% stablecon system and<00:21:49.980> this<00:21:50.400> is<00:21:50.520> a<00:21:50.700> very<00:21:50.880> attractive<00:21:51.240> way<00:21:51.419> to<00:21:51.659> get 00:21:51.770 --> 00:21:51.780 align:start position:0% and this is a very attractive way to get 00:21:51.780 --> 00:21:53.990 align:start position:0% and this is a very attractive way to get good<00:21:51.960> properties<00:21:52.260> of<00:21:52.500> your<00:21:52.620> system<00:21:52.799> it's<00:21:53.700> also 00:21:53.990 --> 00:21:54.000 align:start position:0% good properties of your system it's also 00:21:54.000 --> 00:21:55.610 align:start position:0% good properties of your system it's also a<00:21:54.059> very<00:21:54.299> useful<00:21:54.539> tool<00:21:54.900> to<00:21:55.020> compare<00:21:55.380> different 00:21:55.610 --> 00:21:55.620 align:start position:0% a very useful tool to compare different 00:21:55.620 --> 00:21:59.029 align:start position:0% a very useful tool to compare different stable<00:21:55.980> coins<00:21:56.659> and<00:21:57.659> to<00:21:57.840> think<00:21:58.320> about<00:21:58.559> if<00:21:58.919> the 00:21:59.029 --> 00:21:59.039 align:start position:0% stable coins and to think about if the 00:21:59.039 --> 00:22:01.090 align:start position:0% stable coins and to think about if the stable<00:21:59.220> coin<00:21:59.580> design<00:21:59.700> is<00:21:59.940> actually<00:22:00.120> solid 00:22:01.090 --> 00:22:01.100 align:start position:0% stable coin design is actually solid 00:22:01.100 --> 00:22:04.370 align:start position:0% stable coin design is actually solid I<00:22:02.100> showed<00:22:02.400> you<00:22:02.580> a<00:22:03.299> design<00:22:03.539> for<00:22:03.780> one<00:22:03.960> desirable 00:22:04.370 --> 00:22:04.380 align:start position:0% I showed you a design for one desirable 00:22:04.380 --> 00:22:07.010 align:start position:0% I showed you a design for one desirable Redemption<00:22:04.860> curve<00:22:05.419> and<00:22:06.419> then<00:22:06.539> I<00:22:06.720> showed<00:22:06.960> you 00:22:07.010 --> 00:22:07.020 align:start position:0% Redemption curve and then I showed you 00:22:07.020 --> 00:22:08.390 align:start position:0% Redemption curve and then I showed you how<00:22:07.140> to<00:22:07.260> make<00:22:07.380> that<00:22:07.559> Dynamic<00:22:07.980> and<00:22:08.100> make<00:22:08.280> it 00:22:08.390 --> 00:22:08.400 align:start position:0% how to make that Dynamic and make it 00:22:08.400 --> 00:22:11.630 align:start position:0% how to make that Dynamic and make it react<00:22:08.700> to<00:22:08.880> market<00:22:09.240> conditions<00:22:10.220> and<00:22:11.220> if<00:22:11.400> you 00:22:11.630 --> 00:22:11.640 align:start position:0% react to market conditions and if you 00:22:11.640 --> 00:22:15.590 align:start position:0% react to market conditions and if you want<00:22:11.940> to<00:22:12.320> kind<00:22:13.320> of<00:22:13.440> be<00:22:13.740> be<00:22:14.100> involved<00:22:14.580> into<00:22:14.820> how 00:22:15.590 --> 00:22:15.600 align:start position:0% want to kind of be be involved into how 00:22:15.600 --> 00:22:17.029 align:start position:0% want to kind of be be involved into how we<00:22:15.780> actually<00:22:15.960> do<00:22:16.260> these<00:22:16.500> things<00:22:16.559> we<00:22:16.919> have 00:22:17.029 --> 00:22:17.039 align:start position:0% we actually do these things we have 00:22:17.039 --> 00:22:19.250 align:start position:0% we actually do these things we have implemented<00:22:17.580> this<00:22:17.760> in<00:22:18.179> gyroscopes<00:22:18.900> Dynamic 00:22:19.250 --> 00:22:19.260 align:start position:0% implemented this in gyroscopes Dynamic 00:22:19.260 --> 00:22:21.409 align:start position:0% implemented this in gyroscopes Dynamic stability<00:22:19.559> mechanism<00:22:20.039> gyroscope<00:22:21.000> is<00:22:21.179> our<00:22:21.240> new 00:22:21.409 --> 00:22:21.419 align:start position:0% stability mechanism gyroscope is our new 00:22:21.419 --> 00:22:23.870 align:start position:0% stability mechanism gyroscope is our new stable<00:22:21.720> coin<00:22:22.080> launches<00:22:23.039> planned<00:22:23.400> towards<00:22:23.760> the 00:22:23.870 --> 00:22:23.880 align:start position:0% stable coin launches planned towards the 00:22:23.880 --> 00:22:25.730 align:start position:0% stable coin launches planned towards the end<00:22:24.000> of<00:22:24.120> the<00:22:24.240> year 00:22:25.730 --> 00:22:25.740 align:start position:0% end of the year 00:22:25.740 --> 00:22:27.770 align:start position:0% end of the year um<00:22:25.799> and<00:22:26.520> hopefully<00:22:27.059> all<00:22:27.299> these<00:22:27.480> properties 00:22:27.770 --> 00:22:27.780 align:start position:0% um and hopefully all these properties 00:22:27.780 --> 00:22:29.510 align:start position:0% um and hopefully all these properties are<00:22:27.960> going<00:22:28.140> to<00:22:28.260> make<00:22:28.380> a<00:22:28.799> gyroscope<00:22:29.340> very 00:22:29.510 --> 00:22:29.520 align:start position:0% are going to make a gyroscope very 00:22:29.520 --> 00:22:32.570 align:start position:0% are going to make a gyroscope very robust<00:22:30.360> if<00:22:30.840> you're<00:22:30.960> interested<00:22:31.260> in<00:22:31.380> the<00:22:31.559> paper 00:22:32.570 --> 00:22:32.580 align:start position:0% robust if you're interested in the paper 00:22:32.580 --> 00:22:35.210 align:start position:0% robust if you're interested in the paper and<00:22:33.120> you<00:22:33.240> should<00:22:33.360> scan<00:22:33.600> this<00:22:33.840> QR<00:22:34.200> code<00:22:34.320> and<00:22:35.039> if 00:22:35.210 --> 00:22:35.220 align:start position:0% and you should scan this QR code and if 00:22:35.220 --> 00:22:36.710 align:start position:0% and you should scan this QR code and if you<00:22:35.280> want<00:22:35.400> to<00:22:35.520> get<00:22:35.580> in<00:22:35.700> touch<00:22:35.820> with<00:22:36.000> us<00:22:36.179> you<00:22:36.600> can 00:22:36.710 --> 00:22:36.720 align:start position:0% you want to get in touch with us you can 00:22:36.720 --> 00:22:39.890 align:start position:0% you want to get in touch with us you can go<00:22:36.960> here<00:22:37.200> or<00:22:38.159> follow<00:22:38.400> us<00:22:38.580> here<00:22:38.820> why<00:22:39.720> did<00:22:39.840> you 00:22:39.890 --> 00:22:39.900 align:start position:0% go here or follow us here why did you 00:22:39.900 --> 00:22:42.409 align:start position:0% go here or follow us here why did you guys<00:22:40.020> choose<00:22:40.440> a<00:22:40.620> like<00:22:41.100> a<00:22:41.400> piecewise<00:22:42.059> linear 00:22:42.409 --> 00:22:42.419 align:start position:0% guys choose a like a piecewise linear 00:22:42.419 --> 00:22:43.970 align:start position:0% guys choose a like a piecewise linear approach<00:22:42.780> for<00:22:42.960> example<00:22:43.140> and<00:22:43.320> not<00:22:43.559> something 00:22:43.970 --> 00:22:43.980 align:start position:0% approach for example and not something 00:22:43.980 --> 00:22:46.070 align:start position:0% approach for example and not something that's<00:22:44.280> really<00:22:44.580> smooth<00:22:44.820> like<00:22:45.059> a<00:22:45.240> sigmoid<00:22:45.720> or 00:22:46.070 --> 00:22:46.080 align:start position:0% that's really smooth like a sigmoid or 00:22:46.080 --> 00:22:47.450 align:start position:0% that's really smooth like a sigmoid or something<00:22:46.440> like<00:22:46.679> that<00:22:46.799> are<00:22:47.039> there<00:22:47.220> nice 00:22:47.450 --> 00:22:47.460 align:start position:0% something like that are there nice 00:22:47.460 --> 00:22:49.850 align:start position:0% something like that are there nice properties<00:22:47.820> that<00:22:48.059> you<00:22:48.240> get<00:22:48.360> out<00:22:48.780> of<00:22:48.960> the<00:22:49.559> this 00:22:49.850 --> 00:22:49.860 align:start position:0% properties that you get out of the this 00:22:49.860 --> 00:22:51.770 align:start position:0% properties that you get out of the this then<00:22:50.340> you<00:22:50.520> would<00:22:50.700> not<00:22:50.820> get<00:22:51.059> otherwise<00:22:51.480> yeah 00:22:51.770 --> 00:22:51.780 align:start position:0% then you would not get otherwise yeah 00:22:51.780 --> 00:22:55.370 align:start position:0% then you would not get otherwise yeah let<00:22:52.080> me<00:22:52.140> just<00:22:52.320> just<00:22:52.559> jump<00:22:52.799> back<00:22:52.980> to<00:22:53.220> the<00:22:53.580> slide 00:22:55.370 --> 00:22:55.380 align:start position:0% let me just just jump back to the slide 00:22:55.380 --> 00:22:56.460 align:start position:0% let me just just jump back to the slide so<00:22:56.039> the 00:22:56.460 --> 00:22:56.470 align:start position:0% so the 00:22:56.470 --> 00:22:58.250 align:start position:0% so the [Music] 00:22:58.250 --> 00:22:58.260 align:start position:0% [Music] 00:22:58.260 --> 00:22:59.990 align:start position:0% [Music] should<00:22:58.679> I<00:22:58.860> give<00:22:58.980> the<00:22:59.100> honest<00:22:59.400> answer<00:22:59.580> or<00:22:59.820> the 00:22:59.990 --> 00:23:00.000 align:start position:0% should I give the honest answer or the 00:23:00.000 --> 00:23:01.669 align:start position:0% should I give the honest answer or the line<00:23:00.120> no<00:23:00.360> I'm<00:23:00.539> going<00:23:00.600> to<00:23:00.659> get<00:23:00.780> the<00:23:00.900> answer<00:23:01.020> so 00:23:01.669 --> 00:23:01.679 align:start position:0% line no I'm going to get the answer so 00:23:01.679 --> 00:23:02.810 align:start position:0% line no I'm going to get the answer so if<00:23:01.740> you're<00:23:01.919> honest<00:23:02.100> answer<00:23:02.220> is<00:23:02.520> because<00:23:02.640> it's 00:23:02.810 --> 00:23:02.820 align:start position:0% if you're honest answer is because it's 00:23:02.820 --> 00:23:04.850 align:start position:0% if you're honest answer is because it's easy<00:23:03.059> to<00:23:03.240> implement 00:23:04.850 --> 00:23:04.860 align:start position:0% easy to implement 00:23:04.860 --> 00:23:07.130 align:start position:0% easy to implement um because<00:23:05.460> and<00:23:06.000> like<00:23:06.179> the<00:23:06.360> reason<00:23:06.720> is<00:23:06.900> that 00:23:07.130 --> 00:23:07.140 align:start position:0% um because and like the reason is that 00:23:07.140 --> 00:23:09.110 align:start position:0% um because and like the reason is that this<00:23:07.500> is<00:23:07.620> linear<00:23:08.039> so<00:23:08.460> it's<00:23:08.640> integral<00:23:09.000> it's 00:23:09.110 --> 00:23:09.120 align:start position:0% this is linear so it's integral it's 00:23:09.120 --> 00:23:11.210 align:start position:0% this is linear so it's integral it's quadratic<00:23:09.659> and<00:23:10.440> solving<00:23:10.860> quadratic 00:23:11.210 --> 00:23:11.220 align:start position:0% quadratic and solving quadratic 00:23:11.220 --> 00:23:13.370 align:start position:0% quadratic and solving quadratic equations<00:23:11.520> is<00:23:11.700> easy<00:23:12.059> and<00:23:12.600> solving<00:23:13.140> anything 00:23:13.370 --> 00:23:13.380 align:start position:0% equations is easy and solving anything 00:23:13.380 --> 00:23:16.310 align:start position:0% equations is easy and solving anything else<00:23:13.679> is<00:23:14.039> is<00:23:14.640> hard<00:23:14.940> so<00:23:15.539> I<00:23:15.720> have<00:23:15.900> more<00:23:16.080> of<00:23:16.260> a 00:23:16.310 --> 00:23:16.320 align:start position:0% else is is hard so I have more of a 00:23:16.320 --> 00:23:18.350 align:start position:0% else is is hard so I have more of a philosophical<00:23:16.919> question<00:23:17.220> in<00:23:17.760> the<00:23:17.940> last<00:23:18.059> let's 00:23:18.350 --> 00:23:18.360 align:start position:0% philosophical question in the last let's 00:23:18.360 --> 00:23:20.149 align:start position:0% philosophical question in the last let's say<00:23:18.539> two<00:23:18.780> or<00:23:18.960> three<00:23:19.140> centuries<00:23:19.500> the<00:23:19.740> tenancy 00:23:20.149 --> 00:23:20.159 align:start position:0% say two or three centuries the tenancy 00:23:20.159 --> 00:23:22.070 align:start position:0% say two or three centuries the tenancy in<00:23:20.460> the<00:23:20.580> state-backed<00:23:21.299> currencies<00:23:21.840> has 00:23:22.070 --> 00:23:22.080 align:start position:0% in the state-backed currencies has 00:23:22.080 --> 00:23:24.230 align:start position:0% in the state-backed currencies has always<00:23:22.260> been<00:23:22.559> to<00:23:23.100> leave<00:23:23.400> Beijing<00:23:23.940> to<00:23:24.120> go 00:23:24.230 --> 00:23:24.240 align:start position:0% always been to leave Beijing to go 00:23:24.240 --> 00:23:26.390 align:start position:0% always been to leave Beijing to go toward<00:23:24.539> the<00:23:24.780> free<00:23:24.900> voting<00:23:25.260> money<00:23:25.440> why<00:23:26.159> do<00:23:26.280> you 00:23:26.390 --> 00:23:26.400 align:start position:0% toward the free voting money why do you 00:23:26.400 --> 00:23:28.730 align:start position:0% toward the free voting money why do you think<00:23:26.580> that<00:23:26.820> in<00:23:27.059> the<00:23:27.240> crypto<00:23:27.600> economy<00:23:28.080> we<00:23:28.559> are 00:23:28.730 --> 00:23:28.740 align:start position:0% think that in the crypto economy we are 00:23:28.740 --> 00:23:31.370 align:start position:0% think that in the crypto economy we are seeing<00:23:28.980> a<00:23:29.400> Resurgence<00:23:30.179> of<00:23:30.480> Peg<00:23:30.780> money<00:23:31.020> that 00:23:31.370 --> 00:23:31.380 align:start position:0% seeing a Resurgence of Peg money that 00:23:31.380 --> 00:23:33.890 align:start position:0% seeing a Resurgence of Peg money that seem<00:23:31.620> to<00:23:31.740> be<00:23:31.919> quite<00:23:32.159> prevalent 00:23:33.890 --> 00:23:33.900 align:start position:0% seem to be quite prevalent 00:23:33.900 --> 00:23:35.270 align:start position:0% seem to be quite prevalent yeah 00:23:35.270 --> 00:23:35.280 align:start position:0% yeah 00:23:35.280 --> 00:23:38.570 align:start position:0% yeah yeah<00:23:35.400> that's<00:23:36.299> that's<00:23:36.600> a<00:23:36.840> deep<00:23:37.020> question<00:23:37.580> I 00:23:38.570 --> 00:23:38.580 align:start position:0% yeah that's that's a deep question I 00:23:38.580 --> 00:23:42.590 align:start position:0% yeah that's that's a deep question I wasn't<00:23:38.760> expecting<00:23:39.299> that<00:23:39.539> uh 00:23:42.590 --> 00:23:42.600 align:start position:0% 00:23:42.600 --> 00:23:45.230 align:start position:0% um<00:23:42.780> why<00:23:43.679> why<00:23:43.679> do<00:23:44.100> we<00:23:44.220> have<00:23:44.400> a<00:23:44.580> Resurgence<00:23:45.000> of 00:23:45.230 --> 00:23:45.240 align:start position:0% um why why do we have a Resurgence of 00:23:45.240 --> 00:23:48.649 align:start position:0% um why why do we have a Resurgence of packed<00:23:46.020> coins 00:23:48.649 --> 00:23:48.659 align:start position:0% 00:23:48.659 --> 00:23:51.470 align:start position:0% um 00:23:51.470 --> 00:23:51.480 align:start position:0% 00:23:51.480 --> 00:23:55.010 align:start position:0% I<00:23:51.840> think<00:23:51.960> my<00:23:52.320> intuition<00:23:52.799> is<00:23:53.460> that 00:23:55.010 --> 00:23:55.020 align:start position:0% I think my intuition is that 00:23:55.020 --> 00:23:58.490 align:start position:0% I think my intuition is that people<00:23:55.620> think<00:23:56.280> in<00:23:56.520> USD<00:23:57.059> or<00:23:57.900> in<00:23:58.200> some<00:23:58.380> other 00:23:58.490 --> 00:23:58.500 align:start position:0% people think in USD or in some other 00:23:58.500 --> 00:24:00.710 align:start position:0% people think in USD or in some other fiat<00:23:58.860> currency<00:23:59.220> that<00:24:00.179> is<00:24:00.360> not<00:24:00.539> really 00:24:00.710 --> 00:24:00.720 align:start position:0% fiat currency that is not really 00:24:00.720 --> 00:24:02.990 align:start position:0% fiat currency that is not really represented<00:24:01.320> in<00:24:01.500> crypto<00:24:01.860> maybe<00:24:02.580> at<00:24:02.880> some 00:24:02.990 --> 00:24:03.000 align:start position:0% represented in crypto maybe at some 00:24:03.000 --> 00:24:06.649 align:start position:0% represented in crypto maybe at some point<00:24:03.059> we<00:24:03.299> have<00:24:03.419> a<00:24:03.539> crypto<00:24:03.900> native<00:24:04.440> currency 00:24:06.649 --> 00:24:06.659 align:start position:0% point we have a crypto native currency 00:24:06.659 --> 00:24:08.149 align:start position:0% point we have a crypto native currency um<00:24:06.720> that<00:24:06.900> that<00:24:07.080> doesn't<00:24:07.260> need<00:24:07.500> a<00:24:07.679> pack<00:24:07.799> because 00:24:08.149 --> 00:24:08.159 align:start position:0% um that that doesn't need a pack because 00:24:08.159 --> 00:24:09.770 align:start position:0% um that that doesn't need a pack because it's<00:24:08.460> very<00:24:08.640> stable<00:24:08.880> against<00:24:09.059> other<00:24:09.360> Fiat 00:24:09.770 --> 00:24:09.780 align:start position:0% it's very stable against other Fiat 00:24:09.780 --> 00:24:10.850 align:start position:0% it's very stable against other Fiat currencies 00:24:10.850 --> 00:24:10.860 align:start position:0% currencies 00:24:10.860 --> 00:24:12.710 align:start position:0% currencies but<00:24:11.280> I<00:24:11.400> think<00:24:11.520> we're<00:24:11.700> not<00:24:11.880> there<00:24:12.120> yet<00:24:12.299> and 00:24:12.710 --> 00:24:12.720 align:start position:0% but I think we're not there yet and 00:24:12.720 --> 00:24:15.710 align:start position:0% but I think we're not there yet and that's<00:24:12.840> why<00:24:13.020> we<00:24:13.260> need<00:24:13.380> to<00:24:13.740> represent<00:24:14.580> some 00:24:15.710 --> 00:24:15.720 align:start position:0% that's why we need to represent some 00:24:15.720 --> 00:24:17.750 align:start position:0% that's why we need to represent some some<00:24:16.559> kind<00:24:16.799> of<00:24:16.919> measure<00:24:17.280> some<00:24:17.520> kind<00:24:17.640> of 00:24:17.750 --> 00:24:17.760 align:start position:0% some kind of measure some kind of 00:24:17.760 --> 00:24:20.330 align:start position:0% some kind of measure some kind of numerator<00:24:18.240> that<00:24:19.200> people<00:24:19.440> are<00:24:19.740> familiar<00:24:20.159> with 00:24:20.330 --> 00:24:20.340 align:start position:0% numerator that people are familiar with 00:24:20.340 --> 00:24:22.970 align:start position:0% numerator that people are familiar with and<00:24:20.760> that<00:24:20.940> matters<00:24:21.419> in<00:24:21.600> people's<00:24:21.960> lives<00:24:22.260> yeah 00:24:22.970 --> 00:24:22.980 align:start position:0% and that matters in people's lives yeah 00:24:22.980 --> 00:24:24.950 align:start position:0% and that matters in people's lives yeah let<00:24:23.220> me<00:24:23.340> just<00:24:23.460> add<00:24:23.640> a<00:24:23.760> little<00:24:23.820> bit<00:24:23.940> to<00:24:24.120> that<00:24:24.240> so 00:24:24.950 --> 00:24:24.960 align:start position:0% let me just add a little bit to that so 00:24:24.960 --> 00:24:27.770 align:start position:0% let me just add a little bit to that so uh<00:24:25.740> it's<00:24:26.400> a<00:24:26.580> common<00:24:26.700> strategy<00:24:27.299> when<00:24:27.600> you're 00:24:27.770 --> 00:24:27.780 align:start position:0% uh it's a common strategy when you're 00:24:27.780 --> 00:24:29.870 align:start position:0% uh it's a common strategy when you're kind<00:24:28.080> of<00:24:28.140> like<00:24:28.200> developing<00:24:28.679> a<00:24:28.799> new<00:24:28.919> economy<00:24:29.340> to 00:24:29.870 --> 00:24:29.880 align:start position:0% kind of like developing a new economy to 00:24:29.880 --> 00:24:31.970 align:start position:0% kind of like developing a new economy to do<00:24:30.000> something<00:24:30.240> like<00:24:30.480> a<00:24:30.659> currency<00:24:30.900> Peg<00:24:31.260> and<00:24:31.860> it 00:24:31.970 --> 00:24:31.980 align:start position:0% do something like a currency Peg and it 00:24:31.980 --> 00:24:33.770 align:start position:0% do something like a currency Peg and it seems<00:24:32.280> to<00:24:32.400> work<00:24:32.640> well<00:24:32.880> in<00:24:33.120> those<00:24:33.299> situations 00:24:33.770 --> 00:24:33.780 align:start position:0% seems to work well in those situations 00:24:33.780 --> 00:24:36.350 align:start position:0% seems to work well in those situations because<00:24:34.260> people<00:24:34.799> want<00:24:35.039> to<00:24:35.220> use<00:24:35.460> a<00:24:36.120> more 00:24:36.350 --> 00:24:36.360 align:start position:0% because people want to use a more 00:24:36.360 --> 00:24:38.390 align:start position:0% because people want to use a more trusted<00:24:36.780> unit<00:24:37.380> of<00:24:37.679> account<00:24:37.799> like<00:24:38.100> a<00:24:38.280> dollar 00:24:38.390 --> 00:24:38.400 align:start position:0% trusted unit of account like a dollar 00:24:38.400 --> 00:24:41.510 align:start position:0% trusted unit of account like a dollar and<00:24:39.299> so<00:24:39.419> I<00:24:39.780> think<00:24:39.900> that's<00:24:40.380> has<00:24:41.220> a<00:24:41.400> large 00:24:41.510 --> 00:24:41.520 align:start position:0% and so I think that's has a large 00:24:41.520 --> 00:24:43.549 align:start position:0% and so I think that's has a large influence<00:24:42.000> here<00:24:42.179> but<00:24:42.900> I<00:24:43.020> also<00:24:43.200> just<00:24:43.320> want<00:24:43.440> to 00:24:43.549 --> 00:24:43.559 align:start position:0% influence here but I also just want to 00:24:43.559 --> 00:24:46.190 align:start position:0% influence here but I also just want to note<00:24:43.740> that<00:24:44.100> the<00:24:44.940> uh<00:24:45.120> the<00:24:45.360> autonomous<00:24:45.780> monetary 00:24:46.190 --> 00:24:46.200 align:start position:0% note that the uh the autonomous monetary 00:24:46.200 --> 00:24:49.010 align:start position:0% note that the uh the autonomous monetary policy<00:24:46.679> that<00:24:46.799> we've<00:24:47.039> been<00:24:47.220> developing<00:24:47.720> can<00:24:48.720> be 00:24:49.010 --> 00:24:49.020 align:start position:0% policy that we've been developing can be 00:24:49.020 --> 00:24:51.649 align:start position:0% policy that we've been developing can be more<00:24:49.380> General<00:24:49.620> than<00:24:49.980> just<00:24:50.220> maintaining<00:24:50.880> a<00:24:51.179> a 00:24:51.649 --> 00:24:51.659 align:start position:0% more General than just maintaining a a 00:24:51.659 --> 00:24:53.570 align:start position:0% more General than just maintaining a a currency<00:24:51.960> Peg<00:24:52.380> you<00:24:52.740> can<00:24:52.860> choose<00:24:53.039> parameters 00:24:53.570 --> 00:24:53.580 align:start position:0% currency Peg you can choose parameters 00:24:53.580 --> 00:24:56.750 align:start position:0% currency Peg you can choose parameters in<00:24:53.880> different<00:24:54.059> ways<00:24:54.480> to<00:24:55.380> do<00:24:55.559> more<00:24:56.159> arbitrary 00:24:56.750 --> 00:24:56.760 align:start position:0% in different ways to do more arbitrary 00:24:56.760 --> 00:24:58.630 align:start position:0% in different ways to do more arbitrary monetary<00:24:57.299> policy<00:24:57.780> too 00:24:58.630 --> 00:24:58.640 align:start position:0% monetary policy too 00:24:58.640 --> 00:25:00.830 align:start position:0% monetary policy too I<00:24:59.640> would<00:24:59.880> want<00:25:00.059> to<00:25:00.179> know<00:25:00.240> how<00:25:00.480> do<00:25:00.659> you<00:25:00.780> think 00:25:00.830 --> 00:25:00.840 align:start position:0% I would want to know how do you think 00:25:00.840 --> 00:25:03.770 align:start position:0% I would want to know how do you think about<00:25:01.460> once<00:25:02.460> the<00:25:02.640> system<00:25:02.760> gets<00:25:03.179> under<00:25:03.299> thrust 00:25:03.770 --> 00:25:03.780 align:start position:0% about once the system gets under thrust 00:25:03.780 --> 00:25:05.950 align:start position:0% about once the system gets under thrust and<00:25:04.080> you<00:25:04.260> you<00:25:04.380> get<00:25:04.620> to<00:25:04.799> the<00:25:05.039> Redemption<00:25:05.580> price 00:25:05.950 --> 00:25:05.960 align:start position:0% and you you get to the Redemption price 00:25:05.960 --> 00:25:09.289 align:start position:0% and you you get to the Redemption price like<00:25:06.960> what<00:25:07.440> would<00:25:07.620> be<00:25:07.860> the<00:25:08.100> the<00:25:08.400> mechanisms<00:25:09.120> or 00:25:09.289 --> 00:25:09.299 align:start position:0% like what would be the the mechanisms or 00:25:09.299 --> 00:25:12.409 align:start position:0% like what would be the the mechanisms or the<00:25:09.480> incentive<00:25:09.960> to<00:25:10.559> because<00:25:10.860> it's<00:25:11.340> kind<00:25:12.000> of<00:25:12.179> a 00:25:12.409 --> 00:25:12.419 align:start position:0% the incentive to because it's kind of a 00:25:12.419 --> 00:25:15.289 align:start position:0% the incentive to because it's kind of a uh<00:25:13.020> I<00:25:13.679> think<00:25:13.799> there<00:25:14.220> is<00:25:14.400> some<00:25:14.520> loss<00:25:14.880> of<00:25:15.000> trust 00:25:15.289 --> 00:25:15.299 align:start position:0% uh I think there is some loss of trust 00:25:15.299 --> 00:25:17.649 align:start position:0% uh I think there is some loss of trust in<00:25:15.480> the<00:25:15.659> Market<00:25:16.200> at<00:25:16.679> that<00:25:16.799> point 00:25:17.649 --> 00:25:17.659 align:start position:0% in the Market at that point 00:25:17.659 --> 00:25:20.029 align:start position:0% in the Market at that point how<00:25:18.659> do<00:25:18.780> you<00:25:18.840> how<00:25:18.960> do<00:25:19.140> you<00:25:19.200> think<00:25:19.320> about<00:25:19.500> how<00:25:19.919> to 00:25:20.029 --> 00:25:20.039 align:start position:0% how do you how do you think about how to 00:25:20.039 --> 00:25:22.130 align:start position:0% how do you how do you think about how to regenerate<00:25:20.640> a<00:25:20.820> system<00:25:21.000> and<00:25:21.360> and<00:25:21.659> getting<00:25:21.900> back 00:25:22.130 --> 00:25:22.140 align:start position:0% regenerate a system and and getting back 00:25:22.140 --> 00:25:24.890 align:start position:0% regenerate a system and and getting back to<00:25:22.260> the<00:25:22.440> pack 00:25:24.890 --> 00:25:24.900 align:start position:0% 00:25:24.900 --> 00:25:26.090 align:start position:0% like<00:25:25.320> this 00:25:26.090 --> 00:25:26.100 align:start position:0% like this 00:25:26.100 --> 00:25:27.769 align:start position:0% like this yeah<00:25:26.159> so<00:25:26.940> that 00:25:27.769 --> 00:25:27.779 align:start position:0% yeah so that 00:25:27.779 --> 00:25:30.470 align:start position:0% yeah so that the gyroscope<00:25:28.679> design<00:25:29.120> contains<00:25:30.120> a<00:25:30.299> number 00:25:30.470 --> 00:25:30.480 align:start position:0% the gyroscope design contains a number 00:25:30.480 --> 00:25:33.409 align:start position:0% the gyroscope design contains a number of<00:25:30.779> other<00:25:31.260> uh<00:25:31.860> like<00:25:32.100> lines<00:25:32.400> of<00:25:32.580> defense<00:25:32.940> and 00:25:33.409 --> 00:25:33.419 align:start position:0% of other uh like lines of defense and 00:25:33.419 --> 00:25:35.630 align:start position:0% of other uh like lines of defense and sort<00:25:33.600> of<00:25:33.720> ways<00:25:34.140> that<00:25:34.440> uh<00:25:34.679> that<00:25:35.100> the<00:25:35.220> reserve 00:25:35.630 --> 00:25:35.640 align:start position:0% sort of ways that uh that the reserve 00:25:35.640 --> 00:25:38.269 align:start position:0% sort of ways that uh that the reserve could<00:25:35.760> replenish<00:25:36.240> over<00:25:36.480> time<00:25:37.100> and<00:25:38.100> so 00:25:38.269 --> 00:25:38.279 align:start position:0% could replenish over time and so 00:25:38.279 --> 00:25:40.370 align:start position:0% could replenish over time and so basically<00:25:38.760> this<00:25:39.059> monetary<00:25:39.480> policy<00:25:39.960> the<00:25:40.200> idea 00:25:40.370 --> 00:25:40.380 align:start position:0% basically this monetary policy the idea 00:25:40.380 --> 00:25:43.130 align:start position:0% basically this monetary policy the idea is<00:25:40.500> to<00:25:40.799> buy<00:25:41.220> the<00:25:41.460> system<00:25:41.580> time<00:25:41.940> so<00:25:42.779> that<00:25:42.960> those 00:25:43.130 --> 00:25:43.140 align:start position:0% is to buy the system time so that those 00:25:43.140 --> 00:25:44.690 align:start position:0% is to buy the system time so that those other<00:25:43.320> mechanisms<00:25:43.860> might<00:25:44.100> be<00:25:44.220> able<00:25:44.340> to<00:25:44.460> kick 00:25:44.690 --> 00:25:44.700 align:start position:0% other mechanisms might be able to kick 00:25:44.700 --> 00:25:47.690 align:start position:0% other mechanisms might be able to kick in<00:25:45.140> some<00:25:46.140> examples<00:25:46.559> of<00:25:46.799> that<00:25:46.980> is<00:25:47.340> basically 00:25:47.690 --> 00:25:47.700 align:start position:0% in some examples of that is basically 00:25:47.700 --> 00:25:51.049 align:start position:0% in some examples of that is basically like<00:25:48.200> reserve<00:25:49.200> assets<00:25:49.559> are<00:25:49.980> deployed<00:25:50.400> in<00:25:50.640> Risk 00:25:51.049 --> 00:25:51.059 align:start position:0% like reserve assets are deployed in Risk 00:25:51.059 --> 00:25:53.090 align:start position:0% like reserve assets are deployed in Risk segregated<00:25:51.480> ways<00:25:51.900> but<00:25:52.200> they<00:25:52.679> can<00:25:52.919> still 00:25:53.090 --> 00:25:53.100 align:start position:0% segregated ways but they can still 00:25:53.100 --> 00:25:54.890 align:start position:0% segregated ways but they can still potentially<00:25:53.400> earn<00:25:53.760> some<00:25:53.880> yield<00:25:54.120> and<00:25:54.720> so 00:25:54.890 --> 00:25:54.900 align:start position:0% potentially earn some yield and so 00:25:54.900 --> 00:25:56.830 align:start position:0% potentially earn some yield and so there's<00:25:55.380> sort<00:25:55.559> of<00:25:55.679> a<00:25:55.799> tendency<00:25:56.039> to<00:25:56.340> increase 00:25:56.830 --> 00:25:56.840 align:start position:0% there's sort of a tendency to increase 00:25:56.840 --> 00:25:58.909 align:start position:0% there's sort of a tendency to increase collateralization<00:25:57.840> over<00:25:58.140> time<00:25:58.380> because<00:25:58.679> of 00:25:58.909 --> 00:25:58.919 align:start position:0% collateralization over time because of 00:25:58.919 --> 00:26:00.649 align:start position:0% collateralization over time because of that<00:25:59.100> and<00:25:59.760> then<00:25:59.820> there's<00:26:00.059> also<00:26:00.299> sort<00:26:00.480> of<00:26:00.539> this 00:26:00.649 --> 00:26:00.659 align:start position:0% that and then there's also sort of this 00:26:00.659 --> 00:26:03.710 align:start position:0% that and then there's also sort of this idea<00:26:01.020> of<00:26:01.440> forward<00:26:02.100> guidance<00:26:02.700> from<00:26:03.059> the<00:26:03.360> the 00:26:03.710 --> 00:26:03.720 align:start position:0% idea of forward guidance from the the 00:26:03.720 --> 00:26:06.049 align:start position:0% idea of forward guidance from the the the<00:26:03.840> monetary<00:26:04.500> policy<00:26:05.039> itself<00:26:05.340> like 00:26:06.049 --> 00:26:06.059 align:start position:0% the monetary policy itself like 00:26:06.059 --> 00:26:09.350 align:start position:0% the monetary policy itself like basically<00:26:06.480> the<00:26:07.440> as<00:26:08.400> the<00:26:08.640> out<00:26:08.820> level<00:26:09.059> of 00:26:09.350 --> 00:26:09.360 align:start position:0% basically the as the out level of 00:26:09.360 --> 00:26:11.930 align:start position:0% basically the as the out level of outflows<00:26:09.900> this<00:26:10.260> like<00:26:10.500> time<00:26:11.100> discounted<00:26:11.640> sum 00:26:11.930 --> 00:26:11.940 align:start position:0% outflows this like time discounted sum 00:26:11.940 --> 00:26:14.510 align:start position:0% outflows this like time discounted sum that<00:26:12.240> Stefan<00:26:12.900> was<00:26:13.080> saying<00:26:13.380> decreases<00:26:14.279> over 00:26:14.510 --> 00:26:14.520 align:start position:0% that Stefan was saying decreases over 00:26:14.520 --> 00:26:17.149 align:start position:0% that Stefan was saying decreases over time<00:26:14.820> then<00:26:15.600> there's<00:26:16.020> upward<00:26:16.559> pressure<00:26:16.799> on<00:26:17.039> the 00:26:17.149 --> 00:26:17.159 align:start position:0% time then there's upward pressure on the 00:26:17.159 --> 00:26:19.490 align:start position:0% time then there's upward pressure on the peg<00:26:17.340> from<00:26:17.700> the<00:26:17.880> reserve<00:26:18.299> assets<00:26:18.720> again<00:26:19.020> kind 00:26:19.490 --> 00:26:19.500 align:start position:0% peg from the reserve assets again kind 00:26:19.500 --> 00:26:22.370 align:start position:0% peg from the reserve assets again kind of<00:26:19.620> according<00:26:19.980> to<00:26:20.100> this<00:26:20.400> uh<00:26:20.760> this<00:26:21.480> policy<00:26:21.900> and 00:26:22.370 --> 00:26:22.380 align:start position:0% of according to this uh this policy and 00:26:22.380 --> 00:26:23.690 align:start position:0% of according to this uh this policy and then<00:26:22.500> there's<00:26:22.620> other<00:26:22.799> mechanisms<00:26:23.279> too<00:26:23.460> you 00:26:23.690 --> 00:26:23.700 align:start position:0% then there's other mechanisms too you 00:26:23.700 --> 00:26:25.909 align:start position:0% then there's other mechanisms too you can<00:26:23.820> check<00:26:24.059> it<00:26:24.179> out<00:26:24.299> in<00:26:24.539> our<00:26:24.659> docs<00:26:25.080> and<00:26:25.740> happy 00:26:25.909 --> 00:26:25.919 align:start position:0% can check it out in our docs and happy 00:26:25.919 --> 00:26:30.260 align:start position:0% can check it out in our docs and happy to<00:26:26.159> talk<00:26:26.279> more<00:26:26.460> after<00:26:26.820> after<00:26:27.360> this<00:26:27.659> as<00:26:28.080> well