1/ Empty Set Dollar ($ESD) [ @emptysetsquad]

The first such asset to simultaneously serve as a Store of Value (SOV), stablecoin and a speculative asset

An incredibly asymmetric and reflexive opportunity

2/ Stablecoins were the first crypto products that achieved product-market fit at scale after Bitcoin

Stablecoin growth is currently parabolic (USDT alone approaching $20B) and will be the first crypto sector to achieve mass adoption

3/ So we're all bullish on stablecoins, but traditionally it's been very difficult to gain exposure to their growth

- Tether (USDT) and Circle (USDC) are private companies whose shares trade extremely thinly OTC
- $MKR is a poor proxy of DAI growth (DAI up, MKR sideways)

4/ Enter $ESD, a decentralized elastic supply stablecoin where supply growth directly translates into returns for $ESD stakeholders

i.e. if the market cap of $ESD increases from $100M to $1B, the $900M increase is reflected in the increased portfolio value of stakers

5/ Why is this important?

$ESD would potentially be the first scalable censorship resistant stablecoin built for exchange

The two closest candidates would be $DAI and $sUSD but they don't cut it

This is a multi-billion dollar opportunity ($10B-$100B+)

6/ $DAI is now backed by centralized collateral (USDC, wBTC, etc)

$sUSD is censorship resistance, but if it was widely used as a medium of exchange (MoE) are, that weakens the system it is built off of ( @synthetix_io) as the synth supply needs to be actively traded through sX

7/ $ESD may seem similar to other elastic supply stablecoins such as $AMPL and Basis, but it better in many ways. Namely:

- Stable portfolio value
- Two token system
- Composable / Superfluid Collateral
- Distributed Supply (Satoshi style launch)

8/ $AMPL achieves its $1 target via system wide state modifications (rebases). The issue is that even if $AMPL trades close to $1, your portfolio value can go down even when just holding making it not so stable

9/ $ESD fixes this by replacing rebases with a system of coupons and rewards

Speculators that play the coupon game can risk more to win more. Those that don't want to take risk can simply bond $ESD and have their portfolio value either stay the same or increase (w/ rewards)

10/ $ESD was actually inspired by the Basis design but implemented many protocol improvements leading to greater efficiency. For example the three token system moving to a two token system where the stablecoin serves as both the MOE and speculative asset and shortened cycles

11/ One of the biggest advantages of $ESD since it doesn't rebase is that it can easily serve as a money lego to be plugged into other protocols (all AMMs, money markets, etc.) This is smth $AMPL has struggled with.

A vote has already passed to create a Curve Metapool

12/ This was by far the most voted on proposal for @CurveFinance so far. With it's potential to become premium collateral, it can serve as one of the foundational building blocks within DeFi https://gov.curve.fi/t/scip-11-add-empty-set-dollar-esd-3pool-metapool/1085

13/ The most exciting thing is the quantity and quality of DeFi gigabrains that have been very involved: @will__price @delitzer @rleshner @scott_lew_is @_wilbur4ce_ @LewisFreiberg etc

The current design might not be perfect, but this is the community that could get it there

14/ Not only is the community iterating on the protocol but building a fascinating ecosystem of tools and projects around it

I've always been skeptical of algorithmic stablecoins but $ESD has the highest potential of any I've seen and the first time I've been excited about one

15/ Of course we can't forget what everyone cares about - the absurd farming yields:

During max expansions, this works out to around 3% / epoch (8 hours) - 5000%+ APY

Currently, the yield is 1.66%/epoch. Still not bad.