Deploying a Stablecoin I Kevin Jones

Sun, Nov 2, 2025, 12:00 AM

Kevin Jones walks through the Speedrun Ethereum stablecoin challenge, focusing on building an over-collateralized, onchain stablecoin system. He contrasts models: fiat-backed (USDC/USDT), under-collateralized/algorithmic (risky), and the target design: over-collateralized with robust peg mechanisms. The reference implementation includes five parts: a simplified DEX for swaps, a stub oracle for prices, the stablecoin token with restricted mint/burn, an engine contract that manages collateral, minting, and liquidations, and a staking contract plus a rate controller for borrow and savings rates. Using Scaffold-ETH with burner wallets, he deposits ETH as collateral, mints the stablecoin, and demonstrates how collateralization ratios, liquidation thresholds, and incentives keep the system solvent. Kevin then runs a simulation with trading bots to show peg dynamics. When borrow demand overwhelms supply, the stablecoin price drifts below one; raising the borrow rate discourages new borrowing, nudging price back to peg. If price drifts above one, enabling a savings rate incentivizes holders to stake, increasing supply available to sell and pulling price down. He reviews the core code: access-controlled mint/burn in the token, the engine’s health checks and liquidate flow (anyone can repay and collect a reward), and the role of the oracle and DEX. The session closes by encouraging builders to complete the challenge to deeply internalize risk management, incentives, and onchain monetary policy. 00:00 – Intro and why stablecoins matter 01:18 – The Speedrun Ethereum challenge overview 02:28 – Types of stablecoins and tradeoffs 03:42 – Required components: oracle, DEX, token, engine, staking 04:54 – Token design: restricted mint and burn 06:35 – Spinning up the demo with Scaffold-ETH 09:04 – Adding ETH collateral and minting the stablecoin 10:23 – Collateral ratio, liquidation threshold, and rewards 11:54 – Setting up rates and understanding parameters 13:25 – Bot simulation: price falls below peg 14:26 – Raising the borrow rate to restore peg 16:34 – When price goes above peg: savings rate incentives 17:32 – Staking the stablecoin and yield mechanics 18:47 – Pushing toward unsafe health and liquidation discussion 21:11 – Contract tour: oracle, rate controller, token 22:36 – Engine internals: checks, health, and liquidate user 23:20 – Takeaways and next steps _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 🇮🇳 *ETHGlobal New Delhi* This workshop is specifically for ETHGlobal New Delhi, a 3-day hackathon held September 19-21 at the India International Convention & Expo Centre, bringing together the most skilled web3 developers, designers and product builders from all around the globe for a weekend-long adventure to advance the Ethereum ecosystem! Watch the full ETHGlobal New Delhi 2025 playlist here: https://www.youtube.com/playlist?list=PLXzKMXK2aHh7zCFW3hBqatZ18rQaYeEJL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅ *Follow BuidlGuidl* X: https://x.com/buidlguidl ✅ *Follow ETHGlobal* X: https://x.com/ETHGlobal​ Warpcast: https://warpcast.com/ethglobal Website: https://ethglobal.com YouTube: https://www.youtube.com/c/ETHGlobal _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Are you interested in Ethereum development and entrepreneurship?_ 👉 Sign up for the next ETHGlobal event: https://ethglobal.com/events 🎁 Get exclusive access and perks with ETHGlobal Plus! https://ethglobal.com/plus 📣 Want us to throw an event in your city? Tell us where! https://ethglobal.com/city