Everipedia co-founder Sam Kazemian talks about changing DeFi, stablecoins, and banking through his latest startup, Frax.
Sam Kazemian is an Iranian-American software engineer, entrepreneur, and cryptocurrency enthusiast. He co-founded Everipedia, the first decentralized online encyclopedia on the blockchain, with Theodor Forselius, Mahbod Moghadam, and Travis Moore in 2015.
In June 2019, Kazemian started working on “Frax” with former Federal Reserve nominee Stephen Moore. The company plans to design a stablecoin which maintains its stability through an algorithmically managed reserve of cryptocurrency and digital bonds.
What is your professional background and how did you get started in blockchain?
“I actually got into blockchain back in college through Bitcoin and altcoin mining in 2013-2014. I taught myself programming and crypto stuff as a side hobby while studying neuroscience and philosophy at UCLA.”
What is the mission of your company?
“Frax is a personal passion project of mine because I’ve always thought that an algorithmic/fractional stablecoin is not only possible but can be the only thing in crypto probably bigger than Bitcoin itself. Frax’s mission is to be the first and largest algorithmic/fiat stablecoin solution.”
What are the problems with central banking?
“I actually don’t think central banking has philosophical problems. It’s problems are its lack of transparency and lack of access to central bank interest rates by the common man.”
Why does the world need decentralized banks?
“I think a lot of this has to do with DeFi solutions having clear traction and use cases right now in crypto. Decentralized banking/DeFi allows anyone in the world to secure loans, have access to interest rates/lending, and access to a stable currency with zero counterparty risk and global settlement. Think of what Bitcoin did for transfer of value, but DeFi is for classical financial operations. DeFi and stablecoins get me as excited about crypto as Bitcoin itself.”
Are there any drawbacks to decentralized banking?
“Just lack of understanding, low liquidity in the lending/DeFi markets, and lack of actually decentralized stablecoins other than Dai.”