# Ebisu: Discovering the True Cost of Borrowing in DeFi

- Channel: [Stable Summit](https://streameth.org/stable_summit)
- Date: 2025-10-07
- Duration: 08:03
- Watch: https://streameth.org/watch/yt-m8sJig29Hs8
- YouTube: https://www.youtube.com/watch?v=m8sJig29Hs8

## Description

"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.

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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

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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.