# Deploying a Stablecoin I Kevin Jones

- Speakers: Kevin Jones
- Channel: [ETHGlobal](https://streameth.org/ethglobal)
- Date: 2025-11-09
- Duration: 25:52
- Topics: over-collateralized stablecoin, liquidation, collateral ratio, borrow rate, savings rate, oracle, DEX, peg stability, incentives, Engine contract, restricted mint/burn, staking, interest rate controller, Scaffold-ETH, Speedrun Ethereum, DeFi risk management
- Watch: https://streameth.org/watch/yt-xHchugngbi0
- YouTube: https://www.youtube.com/watch?v=xHchugngbi0

## Description

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

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🇮🇳 *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
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