Launch of Book, what to expect
You've been teased long enough. It's finally here! The preorder of the book — Economics and Math of Token Engineering and DeFi has finally arrived.
This book has been a 3-year long research to deconstruct economics to its foundational principles. Then, using these foundational principles, the economics for decentralised and digital ecosystems is born.
The book contains a total of 26 chapters, covering the topics of economics, finance, technology and math.
Save up to 47% and get access to premium subscription of the newsletter for an entire month for free when you pre-order today: book.economicsdesign.com
Economics Principles
The first half focuses on economic principles. Whilst engineering is extremely important in the entire process of designing and creating tokenised economies, economics is the first step.
If engineering is the "how to optimise", economics is the "what to optimise".
Economics lays the foundation, constraints and objectives before we can start designing these ecosystems. The difference between hard sciences (physics, chemistry, electrical engineering) and soft sciences (economics) is that hard sciences have foundational principles they can always return to. Gravity is gravity. Be it on Earth, Mars, or on the moon. Yet, economics is quite different because the human aspect changes the outcomes.
Since economics is a soft science that changes, it has also evolved. Economics is all about producing and distributing resources. The resources we know have now changed too.
• From centralised physical ledgers to decentralised digital ledgers
• From physical products with marginal-cost based pricing to value-add based pricing
• From scarcity to abundance
The world we know has changed thanks to technological innovation. Now, we look at new ways to coordinate and collaborate in the world of tomorrow.
DeFi Math and Mechanisms
You might think that DeFi started over summer 2020. The truth is that DeFi has been in the making for years. We did not come to this DeFi explosion suddenly without years of building this infrastructure and exploring new mechanisms.
Decentralised finance (DeFi) is more than just new ways of earning large yields in the economic times of 2020. It is a novel way to redesign the capital market by removing intermediaries and improving inefficiencies in the industry.
Does this mean that the traditional finance of capital market is redundant? Absolutely not.
Technology is the tool to redesign the inefficient system as we know and find novel ways to coordinate and collaborate (as seen in economics above).
In the book, the first half is dedicated to economics principles. The second half is on the math and mechanisms used in DeFi. When sharing the various mechanisms and theories, we also apply them to various case studies. A few case studies we shared:
• MakerDAO
• Nexus Mutual
• MolochDAO
• Bancor
• Uniswap
• Curve
• Balancer
• Giveth
• Molecule
This book serves as an operating guide to use economics as a tool to build the future. It also covers the various mathematical mechanisms of the different financial instruments as well as other mechanisms like governance and yield farming.