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Will Stablecoins and PayFi Replace Traditional Banking? w/ Anna Yuan (Perena)

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Dec 3, 2024
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INSIGHT

Stablecoin Liquidity Infrastructure Need

  • Stablecoin ecosystem lacks efficient liquidity and interoperability infrastructure across multiple stablecoins.
  • Perena aims to enable seamless swapping and capital efficiency among various fiat-backed stablecoins on-chain.
INSIGHT

Stablecoins as Narrow Banks

  • Regulated stablecoins like those issued by Paxos hold full reserves, making them resilient to bank runs.
  • Such stablecoins act like narrow banks, offering strong reserve backing unlike traditional fractional reserve banks.
ADVICE

Innovate Stablecoin Infrastructure

  • Build stablecoin infrastructure as a public good to support fintech and payment companies' liquidity needs.
  • Merge AMM liquidity with collateralized debt positions to improve capital efficiency and user yield.
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