The Functions of Money
Rushing to class after another incredible dawn patrol session, I wondered what to expect from my first Economics class. As I sat down in the uncomfortable wooden chair, still in my wet shorts and in my preferred spot at the back, I watched Professor Robbie prepare for this lecture. At the top of the hour, without fanfare, he dove right in and said: “Let’s start by reviewing the top six functions of money”.
That first lecture many decades ago sparked my love of economics. I learned all the ways in which the flows of money are critical to any economy, whether at a local farmer’s market or on a global scale across nation state boundaries.
Let’s take a look at how the Agoric economy is taking shape by examining the flows of its currency, the Inter Stable Token (IST).
Launching a New Economy
The Inter Team is creating a micro-economy with a base currency that will fulfill the top six functions of money. With the mechanics of the Parity Stability Module (PSM), the first three of these are being fulfilled now.
The most widely used digital stable token currencies can already be exchanged one-for-one with IST, using the PSM dApp. Two bridge partners help facilitate the movement of these tokens into the Agoric economy: Gravity Bridge and Axelar Network. As you can see below, the Inter Team has also established the minting limits for each of these tokens.
External Flows
There are numerous places outside of Cosmos from where the stable tokens can be bridged to the PSM from. The pictures below depict some of the most popular.
Internal Flows
Around Cosmos, there are many decentralized exchanges where these stable tokens can be swapped from the popular, circulating governance and utility tokens. Once swapped, they can be brought to the PSM at Inter, again using Axelar and Gravity. It is important to note that this is also a less expensive option. See below for a breakdown of the most widely available options.
Interchain Expansion
With over a million tokens minted already, Inter Protocol is well on its way to establish IST as a medium of exchange, a measure of value, and a store of value. IST is presently finding its way across the blockchains of the Cosmos and the next stop on its journey is for it to be used in exchange, lending, payment, and commerce dApps. As its usage expands, IST will surely fulfill the other three top functions of money.
Tot ziens – Opa.
Sources, References, and Further Reading
Inter - https://inter.trade/
PSM - https://psm.inter.trade/
Wallet - https://wallet.agoric.app/wallet/
My Inter Overview Article - @kaaskop/inter-explained-in-pictures
Axelar - https://satellite.money/
Gravity - https://bridge.blockscape.network/
Osmosis - https://app.osmosis.zone/
Crescent - https://app.crescent.network/swap
Kujira - https://fin.kujira.app/trade/
Loop - https://juno.loop.markets/#Swap
JunoSwap - https://junoswap.com/
TFM - https://juno.tfm.com/juno/trade/swap
Astroport - https://app.astroport.fi/swap
