Sam Kazemian on FraxUSD and the Future of Stablecoins in Decentralized Finance

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Jan 20, 2025

Sam Kazemian, founder of Frax Finance and innovator in decentralized stablecoins, discusses the vision behind FraxUSD. He explains its unique design combining features of both traditional finance and DeFi, with partnerships that bolster user appeal. Kazemian highlights the role of custodians like BlackRock to enhance redeemability and the strategy for maximizing yield amidst market fluctuations. He envisions a future where stablecoins could seamlessly integrate into traditional banking, reshaping economic activity through new financial models.

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ANECDOTE

Frax USD's Resilience

Sam Kazemian discusses Frax USD's redeemability through custodians like BlackRock and SuperState.
He envisions a system resilient to censorship, unlike centralized stablecoins.

INSIGHT

Frax USD's Yield Strategy

Frax USD offers a triple-pronged yield strategy, adapting to market conditions.
It targets the highest risk-adjusted yield through carry trades, over-collateralized loans, or T-bills.

INSIGHT

Frax's Focus and Vision

Frax's primary focus is expanding its stablecoin, Frax USD, and its L2, Fraxchain.
These are considered its main "exports," driving its digital economy.

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