Thursday, January 31, 2019
Ariah Klages-Mundt, an applied math PhD student at Cornell, won 1st place--and $5000-- for his proposal to develop a “Framework for Designing Better Stablecoins”. His work is at the intersection of economics and computer science.
Judged by experts, sponsors, and the community, the project won by far the greatest number of votes.
The proposal aims to understand the failure points of so-called ‘stablecoins’, which try to control the volatility of cryptocurrencies. These stablecoins create markets for exchanging risk between stablecoin holders, who seek stability, and speculators. In the Coinmonks article “The State of Stablecoins—Update 2018”, Ariah discusses recent stablecoin stability problems—including an existing stablecoin that trades at cents on the dollar—that motivate his proposal. The research will have implications for popular cryptocurrency systems such as MakerDAO’s Dai stablecoin. Ariah plans to present his findings at a national meeting and ultimately develop and validate a better stablecoin design.
Read more about the competition here.
Ariah was visiting the London Business School this past year but will return to continue his PhD. He has been part of the BEST Program since 2016. Tag him on Twitter @aklamun