StableLabs – Altlift Case Study
StableLabs
There are currently two attempts in the Czech Republic to create a crown-pegged stablecoin, which would be a cryptocurrency tied to the Czech crown. In addition, Stable Labs aims to become the largest issuer
of stablecoins and tokenized real-world assets (RWA) in EU.
Our Task
In collaboration with Long River Fund, a primary investor in StableLabs, we were asked to conduct a tokenomics audit for the company’s emerging governance token. To design effective tokenomics, it’s essential to have a thorough understanding of the underlying business model. Therefore, we began by modeling the company’s business plan before exploring the token’s structure and potential applications.
Together with the Stablelabs team, we designed a revenue-sharing mechanism for token utility. Leveraging our model, we proposed fee structures and values that enhance competitiveness and
ensure the ecosystem‘s long-term sustainability for the company.
Model
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External Market Cyclicality(Important for testing ecosystem stability)
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Company Costs and Revenues (Testing whether the entire business model makes sense and obtaining precise estimates of the trade volume of stablecoins and RWA products the company needs to reach to be profitable)
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Natural Growth Module for the RWA and Stablecoin Markets (Sterman‘s Adoption Model – a more realistic growth in the form of a logistic curve)
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Supply Side of the Token (Testing how the price will remain stable under various vesting forms)
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Demand Side of the Token (Calculating the threshold value based on the set utility of the token and testing resilience in a bear market)
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Price Projection of the Token and Potential Profit for the Team from Gradual Sales
Our model simulated the ecosystem‘s development over five years from launch. After completing
the model, we used the Monte Carlo method to determine the ideal parameterization for the tokenomics of this project. Additionally, we provided our partners from Long River with documentation on the project‘s potential performance and the key metrics they should aim to achieve.
Figure 1 - StableLabs Model
Figure 2 - Examples of the Final Model Output
Outcome
Our model helped StableLabs validate their business case and use the model‘s outputs when
approaching key investors like WOOD & Company.
The model further served to parameterize tokenomics, primarily in setting the presale price level
and the revenue share size for token holders.
The model also helped accurately determine the market share percentage for stablecoins that
the company needs to achieve to prosper and provided benchmarks for the company to monitor.
Throughout our collaboration, we consulted the entire model directly with the StableLabs team
and helped them make key decisions regarding the project‘s fee structure and the utility token.
