The Stablecoin Liquidity Trap

February 15, 2026

Kevin and Mitchell, Co-Founders of Sierra, talk about how their backgrounds in central banking and liquid funds led them to build a next-generation stablecoin protocol. We chat about the mechanics of yield, the regulatory landscape for platforms like Polymarket, and why the current shift in crypto is moving toward lean, efficient fintech models.

Notes:

95% to 100% of capital earns yield
Money market yields currently 2-3%
Industry shift to fintech and robotics

The Gwart Show is sponsored by Ellipsis Labs. Ellipsis Labs builds the most efficient on-chain markets. Their orderbook and Prop AMM products have delivered price improvement to hundreds of billions of dollars in retail volume. Now, they are bringing their expertise to build Phoenix, the best on-chain perpetuals platform.

Ellipsis Labs is hiring New York-based engineers. If you’re an engineer looking to work with a proven team in making DeFi better, go to ellipsislabs.xyz/careers.

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