# Panel I The Future of Algorithmic Stablecoins | Pragma Istanbul 2023

- Channel: [ETHGlobal](https://streameth.org/ethglobal)
- Date: 2024-10-09
- Duration: 51:21
- Topics: algorithmic stablecoins, MakerDAO, Aave, Rune Christensen, Stani Kulechov, GHO stablecoin, DAI, DeFi governance, DAO, yield farming, stablecoin growth, Maker Endgame, subDAOs, stablecoin stability, crypto governance, onchain payments, DeFi products, Ethereum, Pragma Istanbul, ETHGlobal, DeFi UX, decentralized finance, stablecoin adoption, DeFi summer, crypto regulation, real-world assets, decentralized stablecoins, crypto economy
- Watch: https://streameth.org/watch/yt-aVGAdOVNksE
- YouTube: https://www.youtube.com/watch?v=aVGAdOVNksE

## Description

Join Stani Kulechov, Founder of Aave, and Rune Christensen, Founder of MakerDAO, as they sit down with ETHGlobal’s Kartik Talwar at Pragma Istanbul 2023 for an in-depth conversation on the future of algorithmic stablecoins. \

This session explores how stablecoins like GHO and DAI are evolving in response to market demands, the critical role of user adoption and yield, and how new models like Maker’s Endgame and subDAOs are shaping the next phase of DeFi governance and scalability. Rune unpacks MakerDAO’s transition from a monolithic protocol to a modular ecosystem of subDAOs, emphasizing alignment engineering and decentralized control.

Stani discusses Aave’s strategy behind launching GHO and how protocol design, liquidity guarantees, and governance minimalism are influencing product decisions. The conversation also covers the challenges of stability, governance complexity, real-world integration, and the long-term viability of decentralized currencies. Whether you’re building in DeFi, researching stablecoins, or looking to understand what comes next in Web3 finance, this talk delivers deep insights into the infrastructure powering the decentralized economy.

00:00 Introduction to panel on algorithmic stablecoins
00:58 MakerDAO’s new direction and user demand
03:12 Yield as a growth strategy for Maker
05:18 Why Aave launched GHO stablecoin
08:31 Measuring stablecoin success: supply vs. demand
10:01 Stablecoins for payments and global GDP
13:59 What is Maker’s Endgame strategy?
17:46 SubDAOs and decentralizing Maker governance
21:34 Aligning subDAOs with MKR holders
26:36 Stani’s take on governance minimalism
30:20 Stability management and DAO alignment
33:49 Alignment engineering and self-healing DAOs
36:49 Is GHO a product or a protocol?
39:31 MakerDAO’s upcoming rebrand
41:09 Aave’s user-first stablecoin product strategy
44:11 Organic growth and adoption of GHO
45:17 Advice to each other and cross-protocol insights
47:08 Audience Q1: Future of seigniorage stablecoins
48:19 Audience Q2: STI integrations, real-world growth
50:45 Closing remarks and appreciation

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🇹🇷 *Pragma Istanbul*
The sixth edition of Pragma took place in Istanbul in November 2023 with a curated series of high-quality talks that sparked thought and discussion. Pragma Istanbul 2023 was an opportunity discuss the future of web3 and reflect on the past. Watch the full Pragma Istanbul 2023 playlist here: https://youtube.com/playlist?list=PLXzKMXK2aHh4rHV1H4J7y0wDok4bIS17t&si=lb8ttkU1HS2tpnUP

ETHGlobal's Pragma series takes place in cities around the world, and is designed to be a different kind of event. Pragma is a one-stage conference with founders-only on stage, bringing together a small group of curated attendees and speakers to discuss the future of web3 and reflect on the past. 

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