I just paid over $50 for a large half-pepperoni pie.  It was a very good pie.  And I enjoyed it very much.  

Still.  50 Bucks??  What. The. Hell.

Inflation isn't super fun.  Stablecoins can help.  

Yield bearing stables specifically.  Most are back by t-bills, which is great and earns yield that could be designed to offset inflation.  T-bills earn on average 3-4% APY.  Inflation in the US is historically around 3.1%.  So the math, maths. However, problems exist.

If you only back the stablecoins with t-bills, yields will compress.  Sam made this point recently and I agree 100%.  Basically, if stablecoins grow to $1-2T in TVL, and that’s mostly backed by t-bills, stablecoin issuers will have to buy a boatload of t-bills, which will push down yields close to 0, and no longer incentivize or offset inflation.

We need new stablecoin collateral designs.

I think we should take a page from legendary investor Ray Dalio, and make an “all-weather” stablecoin.  That is, a stablecoin backed by a basket of assets that provide yield in various market environments (rising/falling inflation, rising/following growth).  Some call these “Strategy-Backed Synthetic Dollars” (SBSDs), which is a great way to think of them.  But most current SBSDs weigh too heavily to DEFI for yield.  Still, not a totally new idea.

What I’m proposing is a SBSD backed by a basket of RWAs.

Today, a good v1 could split collateral 50/50 between tbills and the S&P.   Give holders exposure to American Exceptionalism, and the consistent returns of both assets.  This would create a truly GREAT DOLLAR, fighting inflation, backed by the American government and the greatest American companies.  You could use Vanguard funds to express this trade.

Regulatory hurdles exist, for sure.  But something tells me the current admin may be open to something so wonderful.