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Mechanism Analysis

Mechanism Analysis · Page 2

Jun 14

Mint and Redeem: How $1 In, One Coin Out Really Works — and Why the Redemption Right Is the True Anchor of the Peg

A stablecoin holds $1 not just through arbitrage but through the promise...
Jun 11

Where Does Stablecoin Yield Come From? Complete Breakdown of Three Mechanisms: DSR, Aave, and Curve

A stablecoin's 5% annualized yield could be three completely different...
Jun 10

How Does USDC Stay at $1? Reserve Mechanics, Arbitrage Loops, and the Vulnerability You Didn't Think About

USDC's $1 isn't because it says $1. It's because arbitrageurs test that...
Jun 10

How Does DAI Work? A Deep Dive into MakerDAO's Over-Collateralization — The Real Cost of a Decentralized Stablecoin

DAI is a design that refuses to compromise: to avoid depending on anyone, it...