At The Fedz, we take small, careful steps forward, guided by research and a clear understanding of the problems others have faced in this space. We are charting a new course by building upon foundational theories such as bank run theory, game theory, macroeconomic research, and insights from various scientific disciplines. Yet, our implementation is innovative and untested, requiring humility, caution, and a clear-eyed recognition of the risks inherent in financial systems.
The Nature of Financial Risk
All financial instruments and structures inherently carry risk, which shapes our guiding philosophy. We focus on Bank Run Mitigation, not Bank Run Prevention, acknowledging that while we can manage and reduce risks, we cannot claim to eliminate them. This distinction is vital. It reminds us to avoid complacency and remain vigilant as we design, test, and refine our systems.
History provides countless examples of seemingly stable financial structures that ultimately failed. Some held billions in capital and enjoyed years of stability before their vulnerabilities were exposed. These cautionary tales are not just lessons but also warnings that inform our approach.
Walking a Plowed Field
In the crypto and stablecoin space, most projects prioritize raising capital quickly. Total Value Locked (TVL) is often treated as the ultimate key performance indicator (KPI), and this primary capital-quick approach creates significant vulnerabilities. The relentless push to grow TVL incentivizes projects to take higher risks, often at the cost of long-term stability. This race for immediate capital leaves many projects exposed to volatility, trust erosion, and collapse.
The terrain we traverse is well-trodden, marked by both successes and failures. Anomerase failures before us serve as reminders of the challenges ahead. Yet, those failures also illuminate paths forward. They show us what to avoid and where to focus our efforts. Our approach is to learn from these experiences while recognizing that our journey will include unique obstacles.
This is why we are starting cautiously, with minimal capital, and focusing on practicing stability at every step. By avoiding the TVL rat race, we create room for thoughtful experimentation, steady learning, and meaningful improvement. Our strategy is designed to fail safely. We anticipate setbacks, view them as opportunities for growth, and ensure that each iteration strengthens our system.
Building Trust, One Step at a Time
The cornerstone of our approach is trust. Trust is not granted; it is earned through consistent effort and transparency. We communicate clearly to our community: We know failure is possible and take measures to learn from setbacks. Most importantly, to keep pratic stability even after a bank-run scenario. Our systems, from formulas to smart contracts and tokens, are designed to evolve, and so is our mindset.
Our willingness to rebuild, adapt, and iterate sets us apart. By embracing this incremental approach, we aim to demonstrate resilience and reliability. Trust is built when communities see the stability mechanism and the commitment to improve, even when facing challenges.
Join Us on This Journey
We believe that our strategy of Strategically Practicing Stability is not just the best way forward but the only responsible approach. We invite you to join us in this journey as we continue to build. Together, we can redefine what it means to create a stable, reliable financial system. Together, we can grow, learn, and win—step by step.
Let’s practice stability, together.
