Stablecoins are a key component of the crypto space. A purely decentralized design has not been found yet, and research is still very active, introducing novel approaches to push the ecosystem forward. One of the main areas of research in stablecoins design is peg stability. This talk will explore the most modern stablecoin designs, how they keep the stability and the mechanisms that are implemented to maintain the peg. Focus will be given to the designs developed for the GHO stablecoin, recently launched by Aave and integrated within the aave protocol, detailing the novel implementation using PIDs (Proportional Integral Derivative) controllers to automatically govern GHO interest rates in a programmable and predictable way.
Emilio Frangella
Aave
Emilio is currently VP of engineering for DeFi at Aave. Previously he has been one of the main contributors to the development of the Aave protocol in all the three versions currently released. He has extensive experience in building defi protocols and has been involved in cryptoeconomics and mechanisms design since 2017.