A Note On Stablecoin – Anti-Stablecoin Asymmetry

6 Pages Posted: 15 Sep 2022

Date Written: August 29, 2022


We explore the properties of a product, the so-called “anti-stablecoin,” inspired by a Twitter comment from a well-known cryptocurrency fund manager. This begins by providing a clear definition for such a product and then work several of its properties. We then sketch a general proof that anti-stablecoins require more capital than stablecoins while also constructing an anti-stablecoin design that requires an arbitrarily small quantum of incremental capital to work indefinitely. The main contribution here is to show that odd asymmetries exist between stablecoins and anti-stablecoins that feel foreign relative to traditional financial math.

Keywords: DeFi, Cryptocurrency, Stablecoins

Suggested Citation

Reiter, Jonathan, A Note On Stablecoin – Anti-Stablecoin Asymmetry (August 29, 2022). Available at SSRN: https://ssrn.com/abstract=4202966 or http://dx.doi.org/10.2139/ssrn.4202966

Jonathan Reiter (Contact Author)

Data Finnovation ( email )

1 North Bridge Road #01-01
High Street Center
Singapore, 179094

ChainArgos ( email )

1 north bridge road
Singapore, 179094

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