In this episode of The Latest Development, host Dirt sits down with Drake Evans, CTO and technical founder of Agora, a leading stablecoin platform. Drake shares his journey from traditional finance to crypto, his pivotal role at Frax, and the vision behind Agora’s multi-chain stablecoin, AUSD. They dive into the challenges of building on multiple blockchains, the importance of transparency in stablecoins, and how Agora is enabling institutions and developers to leverage AUSD through white-labeling. From real-world asset (RWA) tokenization to navigating bear and bull markets, this episode is packed with insights for anyone interested in the future of decentralized finance.
Time Stamps:
Introduction (00:00 - 00:37)
Host Dirt kicks off the episode, introducing guest Drake Evans, CTO of Agora.
Overview of topics: stablecoins, RWAs, and Agora’s mission.
Drake’s Background: From Finance to Crypto (00:37 - 09:48)
Drake shares his career path: starting in venture capital and private equity, transitioning to software development at ADP, and diving into crypto.
Early crypto ventures: mining Ethereum in 2016, co-founding DapHero, and joining Frax to build Frax Lend and FraxEther.
Key moment: Joining Agora after a pivotal conversation with founder Nick, raising a seed round in October 2023.
Agora’s Vision and Multi-Chain Strategy (09:48 - 15:21)
Agora’s mission: building AUSD as a public good abstraction layer for traditional finance and blockchains.
Multi-chain from day one: AUSD is live on 14 chains, focusing on fast-growing ecosystems to capture new users.
Challenges of multi-chain development: building systems to abstract chain differences and navigating unique virtual machine architectures.
Stable coin Adoption and White-Labeling AUSD (15:21 - 33:20)
AUSD’s growth: ~$135M market cap, with adoption across various chains and strong interest from institutions.
White-labeling strategy: enabling apps and institutions to brand AUSD, leveraging shared liquidity and interoperability without building from scratch.
Target audience: from app developers (e.g., for NFT marketplaces or memberships) to banks in emerging markets looking to onboard to blockchain.
Regulatory and market tailwinds: Circle’s IPO, Trump administration’s crypto focus, and institutional interest (e.g., Stripe, BB&K acquisitions) driving stable coin demand.
Transparency vs. Stability in Stable coins (20:45 - 27:27)
Balancing transparency: Agora uses monthly attestations and proof-of-reserves, but excessive transparency (e.g., revealing banking partners) can lead to risks like USDC’s depeg during the SVB crisis.
Lessons from Frax: on-chain transparency was key, but as stable coins integrate with traditional finance, trade-offs emerge.
Governance risks: fully permissionless systems can enable economic exploits, highlighting the need for professional oversight.
The Future of RWAs and Stable coins (33:20 - 43:40)
Credits
Host: Mike aka Dirt
Guest: Drake Evans, CTO of Agora
Produced by: EXO Tech Media in partnership w KlutchShotz