Astrolescent: the first fully collateralised stablecoin launching on Radix

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Summary

Michael Videtto, Astrolescent's co-founder, has a background in physics and electrical engineering, as well as 15 years of investing experience in both crypto and traditional finance. He has an interest in macroeconomics and aims to further his knowledge in the field.

Astrolescent intends to bring Radix into the mainstream by combining DeFi and traditional finance through four financial products. Their first product is a decentralised exchange aggregator, which will be followed by other products that will use the aggregator to provide users with more options and flexibility. Astrolescent seeks to mitigate risk by looking into partnering with multiple banks rather than just one. In July 2023, they plan to launch USDA, an audited and fully-backed stablecoin issued in the US on Radix, along with other products.

During the discussion, Michael emphasised the importance of crypto industry regulation to prevent scams and build trust. He also discussed the stability of stablecoins such as USDC, as well as how well-regulated and diversified companies like Circle can recover from losses and continue offering stablecoins. Michael also highlighted the importance of transparency and proof of reserves in stablecoins. Astrolescent will use a KYC verification token to ensure the security of their DeFi products and to track token ownership on the network.

Michael and Piers discussed Radix's potential, highlighting its adaptability to future regulations such as KYC requirements for stablecoin transactions, which Ethereum cannot enforce. They also talked about the possibility of hybrid permissioned and permissionless systems in the DeFi space, as well as the importance of regulation and compliance in attracting traditional capital. Michael is excited about Radix's potential and is looking forward to seeing what killer apps will be developed on the platform. Astrolescent is also partnering with DeFi Plaza to provide liquidity pools with the USDA pair and is offering rewards to those who provide initial liquidity or mint ASTRL tokens.

Key takeaways

• Michael believes in the potential of DeFi to change the world but also highlights the need for regulation in the crypto industry to prevent scams and build trust.
• Astrolescent is planning to launch an audited, fully-backed, American-issued stablecoin in July 2023, around the launch of Babylon, along with a suite of products. This will be the first stablecoin on Radix.
• In traditional markets, the majority of assets are completely illiquid. This means that billion-dollar companies and unicorns in Silicon Valley often have no liquidity for their underlying equity.
• To make sure that their DeFi products are KYC-protected and that they can track who has how many assets of various token types on the network, Astrolescent plans to use a KYC verification token that is soulbound.
• Michael encourages users to try out Astrolescent’s prototype, provide feedback, and support them by providing liquidity. They aim to change the game in a better way by making it more regulated and safer for everyone.

Chapters

[01:05] Michael’s view on the impact of the Silicon Valley Bank USDC wobble on stablecoins

[02:28] Are decentralised stablecoins the future of DeFi in light of the recent events?

[03:39] The importance of stablecoins for DeFi and public ledgers

[04:39] The founding of Astrolescent and their first product

[06:23] Michael’s background and interest in crypto and finance

[07:09] Did Michael initially become interested in crypto through his interest in finance and macroeconomics?

[08:39] The challenges of launching a stablecoin in a mature market issued out of the USA: Astrolescent's approach with USDA

[10:38] Launching the first stablecoin on Radix

[11:45] Using Radix-specific features for USDA launch

[12:59] A new emerging narrative in DeFi: Is building on-ledger applications that are transparent, leverage smart contracts, and are also compliant becoming a big growth area for DeFi?

[14:10] Astrolescent's plans for the liquidity around their first product, the USDA stablecoin

[16:03] Astrolescent's challenge with state-by-state banking regulations in the US

[16:59] The global availability of USDA and who can use it

[17:54] Can USDA be freely transferred after purchase or is it subject to restrictions?

[18:42] Astrolescent leverages the powerful rule set associated with tokens in the Radix engine to future-proof their stablecoin and build a product that works for both DeFi and traditional finance.

[21:04] Hybrid permissioned and permissionless systems, regulation, and innovation in DeFi

[24:45] What is the most useful thing that the Radix community can do for Astrolescent right now?

Further resources

• Website: astrolescent.com
• Twitter: @astrolescent

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