Everipedia co-founder Sam Kazemian discusses revolutionizing DeFi, stablecoins, and banking through his latest innovative project, Frax Finance.
Sam Kazemian is an Iranian-American software developer, investor, and cryptocurrency advocate. He co-established Everipedia, the pioneering decentralized online encyclopedia built on blockchain technology, alongside Theodor Forselius, Mahbod Moghadam, and Travis Moore in 2015.
In June 2019, Kazemian began developing "Frax" with former Libertarian Vice Presidential candidate Moore. The project aims to design a stablecoin that maintains its stability through an algorithmically managed basket of cryptocurrency and digital bonds.
What inspired your journey into cryptocurrency?
"I initially entered the blockchain space during college through Bitcoin and altcoin mining in 2013-2014. I self-taught programming and cryptocurrency fundamentals as a side project while studying neuroscience and philosophy at UCLA."
What is the core mission behind your company?
"Frax represents my personal passion project because I've always believed that an algorithmic/fractional-algorithmic stablecoin isn't just feasible—it could potentially become the most significant innovation in crypto beyond Bitcoin itself. Frax's mission is to establish the first and premier algorithmic/fiat-collateralized stablecoin solution in the market."
What are the fundamental issues with central banking?
"I don't necessarily see philosophical problems with central banking. The primary issues are its lack of transparency and restricted access to central bank interest rates for ordinary individuals."
Why does the world need decentralized banking solutions?
"This largely stems from DeFi solutions demonstrating clear utility and real-world use cases in cryptocurrency today. Decentralized banking/DeFi enables anyone globally to secure loans, access interest rates/lending services, and participate in a stable monetary system with transparent counterparty risk and global reach. Consider what Bitcoin accomplished for value transfer—DeFi achieves similar innovation for complex financial transactions. DeFi and stablecoins excite me as much about crypto's future as Bitcoin itself."
What are the current limitations of decentralized banking?
"Primarily the lack of robust, high liquidity in lending/DeFi markets, and the scarcity of truly decentralized stablecoins beyond Dai."
What services will your protocol offer?
"We won't provide conventional services. We're building the open-source Frax protocol—a fully decentralized stablecoin system. Part of the Frax ecosystem will enable DeFi lending of the collateralized assets in a manner similar to Compound.finance. Think of it as a decentralized central bank—a Decentral Bank!"
What do you identify as the major barriers to mainstream cryptocurrency adoption?
"By 2019, most people recognize two critical challenges: asset price volatility and insufficient financial infrastructure (lending/interest rates). This explains why stablecoins and DeFi solutions are so crucial. From Donald Trump to Jack Dorsey, prominent figures have commented on Bitcoin's volatility. My perspective: technical/UX/scalability issues aren't the primary adoption barriers—it's the volatility that makes crypto an unreliable store of value."
What is your perspective on Facebook's Libra?
"I find it an intriguing initiative, but it's disappointing they're attempting to create their own (association/semi-centralized) cryptocurrency rather than embracing fully decentralized, open standards like Bitcoin, Ethereum, and EOS. Their chances of success would significantly improve if they integrated open-source cryptocurrency principles instead of trying to corner the market themselves."
Which blockchain companies (excluding your own) excite you most?
"I'm particularly impressed with what Square is accomplishing through Square Crypto. Jack Dorsey demonstrates exceptional vision regarding Bitcoin and blockchain integration into mainstream finance. I find myself aligned with his perspective on numerous cryptocurrency developments."
