Introduction: A New Era of Decentralized Monetary PolicyTraditional central banks, like the U.S. Federal Reserve, have long been the guardians of monetary stability. Their tools involved setting interest rates, controlling the money supply, and acting as lenders of last resort. In decentralized finance (DeFi), projects are beginning to mirror these roles in innovative ways. MakerDAO’s CDPs¹ (Collateralized Debt Positions) were an early example, allowing users to generate a stablecoin (DAI) by...

Introduction: A New Era of Decentralized Monetary PolicyTraditional central banks, like the U.S. Federal Reserve, have long been the guardians of monetary stability. Their tools involved setting interest rates, controlling the money supply, and acting as lenders of last resort. In decentralized finance (DeFi), projects are beginning to mirror these roles in innovative ways. MakerDAO’s CDPs¹ (Collateralized Debt Positions) were an early example, allowing users to generate a stablecoin (DAI) by...