Ebisu: Discovering the True Cost of Borrowing in DeFi

"User-set rates allow us to find the true cost of borrowing in DeFi." - Ethan, Core Contributor, Ebisu DeFi has no central bank but it needs real credit markets. Ebisu is building an asset-backed stablecoin powered by user-set interest rates, redemptions, and free-market incentives. This talk explains how EBUSD adjusts rates dynamically, keeps its peg, and turns borrower behavior into the signal for discovering the true cost of capital onchain. --- 00:00 Intro to Stablecoin Models 00:30 Why Asset-Backed Stablecoins Matter 01:03 DeFi Money Supply Analogy 01:37 The Need for Credit Expansion 02:09 What Ebisu Is Building 02:41 How EBUSD Works 03:38 Redemption Mechanics 04:08 Liquidations and Stability Pool 05:05 25% of Yield Supports Liquidity 05:37 Why User-Set Rates Matter 06:06 Example: Rate Equilibrium In Action 07:00 Peg Pressure and Rate Feedback Loops 07:56 Closing Thoughts --- Explore Upcoming Events 👇 ➣ Stable Summit III: Devconnect • Website: https://www.stablesummit.xyz/ • Email: info@stablesummit.xyz • Apply to Speak/Sponsor: https://partyactionpeople.typeform.com/devconnect2025?typeform-source=www.stablesummit.xyz ➣ Stablecoin Summit: Singapore by XREX & Unitas • Website: https://stablecoinsummit.com/ • Email: team@stablecoinssummit.com • Apply to Speak/Sponsor: https://partyactionpeople.typeform.com/stblcoin3?typeform-source=stablecoinsummit.com ➣ Blockchain Oracle Summit: Devconnect • Website: https://blockchainoraclesummit.io/ • Email: info@partyactionpeople.com • Apply to Speak/Sponsor: https://partyactionpeople.typeform.com/BOS25apply ➣ Listen to the Stable School Podcast Link: https://stableschool.org/podcast ➣ Follow Stable Summit on X Link: https://x.com/stable_summit — About: By Stake Capital Group and Party Action People, and presented by Curve Finance, Stable Summit has been gathering leaders in stablecoins almost quarterly since 2023. Our content is curated through hours of one-on-one research with the leading minds in the stablecoin space. Each program is a highlight reel of what leaders in stables are curious about in real time. Our audience consistently features the full spectrum of the stablecoin ecosystem, from DeFi protocols to institutions, from stablecoin issuers to central banks, and every llama in between.