Hello everybody, it's Lisa here and I'm super glad to welcome you to today's live stream. As you know, we go live every week and there are actually two live streams, one on Tuesday and another one on Friday, so today is my turn and on Friday you will probably see my colleague Linda and today's topic is actually pretty fascinating because it's related to grammar and who doesn't love grammar, right? I think that every teacher is really in awe when we talk about grammar lessons as well as some students, right? And I should say that today's live stream is going to be pretty brief because I'm just going to share my insights from the workshop I took part in last week, so it will take approximately 30 to 40 minutes I should say, however, if you have any questions, it's just can be like 10 minutes extra or something, so stay tuned, but before we move on, my question is where are you guys from? Let me know over the chat box, let's have this brief small talk in the beginning of the session, so I'm located in Yekaterinburg, Russia, it's the rural region of Russia and today is freaking hot, it's just boiling hot, I don't know why, I should say that it's not normal for Russia, although this summer is pretty different from most summers and yeah, it's just super hot, I personally don't like it because I can't go to a lake or I don't know, so I have to stay in my hometown and I have to work, so when it's hot like this, I feel so annoyed because I can't do anything with it, I should stay on one place. Okay, so nice to meet you guys, there are people from South Africa, from Morocco, wow, and from Canada as well, nice to meet you here guys, thanks so much for joining in, yeah, and as for South Africa, is it the winter period now, right, because I feel like it's a little bit different in that part of the world, anyway, so yeah, nice to see you guys, nice to, that's so cool to know that there are people from different parts of the world, and this is the way I understand that we are truly global, and it's just awesome, thanks a lot for joining in, and as I have already mentioned, today's session is going to be really brief because I'm just feeling like I have to share my insights from a workshop from a master class I took part in last week, it was devoted to lesson planning, to grammar lesson planning, and I can't say that everything that I heard there was super new, but still some things are really important to mention, I haven't prepared any slides today, so we will just have a chat, and if you guys have any questions, feel free to ask me over the comments section, and I think that by the end of the presentation, by the end of my talk, I'm going to reach out to you, and yeah, just share my thoughts, and I'll try my best to help you out, okay, and also I would like to mention that if you click on this, not click, if you scan this QR code from the top right corner, you will get to the ITTT's website, and you will be able to get this awesome 30% discount of any TEFL courses, so if you are willing to take a TEFL course, if you want to get TEFL certified, it's actually a great idea, it's a great incentive, I believe, it will save you a lot of money, and yeah, you will probably benefit from it, but that is all for advertising, I know that it sounds a little bit daunting, nobody likes a lot of sales, so that's all, I just wanted to mention that, and let's just move on to the main point of today's conversation, all right, I can see guys that you are talking about your places, about your hometowns, and that it's hot or cold in your locations, so I hope you can have some networking over the comment section as well, that's actually really cool when you meet interesting people on the internet, this is actually what I like to do, I'm a real internet worm according to my boyfriend, okay, so as for grammar lessons, so let me change the banner, and this is the rule number one, which I kind of know, like it's pretty simple and clear, super obvious, that when you start planning your grammar lessons, you have to be aware of the rules you're going to present, however, I know that some people tend to neglect this idea, because like you're experienced, we know everything pretty well, but that's not true, right, sometimes it becomes challenging to explain even easy things, that is why the teacher who worked with us with like ESL teachers and shared his experience about planning grammar lessons, he just highlighted this phrase, this very idea, and I feel like I have to mention it as well, because it's my common mistake to neglect just checking up some rules, some explanations of the most basic things I'm going to teach, and it is actually makes a lot of troubles, it brings a lot of troubles when it comes to real explanation during a lesson, and sometimes, as you know, like something goes just not according to the plan, and usually if I'm not completely sure about some functions or forms, you know, of some specific grammatical points, I get so stressed, and I believe that this is a pretty common situation to many other teachers, and it's not just about non-native speakers, it's about native speakers as well, because grammar is just not something we know how to explain by heart, right, it's just not some common sense, and we have to make our research before going to students and explaining something, but you know, like even if you're not an advanced level, so if you don't have some advanced or proficiency level of English yourself, like being one step ahead of your students is just okay already, just make sure that before you start planning and before you go to the classroom, you check out that you know everything for sure, and the second idea which I really loved was that if you are going to explain some grammatical points, it's like 100% that they are going to be not clear to everyone from the beginning, sometimes it gets boring to get to know some grammatical things, so what helps a lot is if your explanation is sound-biting, so make sure that when you go to the classroom, you have some strategies to explain difficult rules easy and at the same time interesting, so together with the first point, these two things are just something really important and crucial for all English teachers. All right, and the next step I would like to take is to ask you a question, so how would you explain, for example, present perfect? Give me some ideas over the comment section, because this is probably the most engaging way how we can brainstorm it and how we can understand the best strategy to plan grammar lessons and to teach them, so let's take like the next several moments to think about the ways we can explain present perfect. I know that present perfect sometimes is really challenging to be explained and students, I think that they are usually like pre-intermediate or intermediate when they face present perfect for the first time, so it might be challenging for them to comprehend at the very beginning, so could you please propose any ideas how we can explain present perfect easy and in a fun way? Okay, so let's have this conversation, right? Of course, just in a moment, I'm going to share my ideas and yeah, I will also let you know like how to explain this grammatical point and that explanation, that strategy will be possible to implement to any grammar point you are going to teach and actually it's also possible to implement this strategy to any other teaching points like vocabulary or teaching some specific things like I don't know when you teach skills as well, so please guys don't be shy, just share several ideas over the comment section and let's try to have like a workshop here, let's brainstorm together, okay? So think of some basic ideas how to present present perfect to ESL students for the first time, okay? And as a hint, just look at this idea here, so normally we would probably present some grammatical points using texts, this is a really basic thing to bear in mind when you plan your lessons, it's extremely important to pick out some real English and as you know, like grammar here is not for opening brackets, right? It's not for filling in the gaps, it's for something slightly more important, right? So how can we use texts to explain present perfect for example, okay? Do you have any idea, okay? I hope you can have this conversation with me, I know it's slightly daunting to like express your ideas when you are here just to listen, but let's try at least like a couple of things to mention, okay? So if you don't have any questions, any ideas, if you don't want to communicate with me, it's okay. I know that it's a little bit annoying probably or stressing, so I'm going to share my thoughts over this problem and actually when it comes to presenting and grammatical topic, in our case it's present perfect, there is a five steps approach to present something, to present a specific point, and let's go from the first step to the last one and I'll explain those steps on the example of present perfect, okay? So usually when we start planning lessons, what we want to do is to create some engaging activity, and actually if you took part, if you have already taken a tuple course, you should know about the ESA strategy and these five steps approach is almost like this, but it's like how to put it correctly, I have no idea, but like there are five steps, but they can be introduced using the ESA methodology in general. So I can see a comment actually, so let me see. Okay, all right, so that's a great idea, thanks a lot Fatima, I think that you have proposed just a great approach to planning a grammatical grammar presentation, however it's a little bit challenging, I should say, so those things are correct, I believe, but they are clear to experienced teachers probably, but not necessarily to students, so let me just share those ideas which are quite simple but precise, and you will probably be able to take this structure and implement it into your teaching, okay? So as I've already mentioned, the first step to take, yeah it's a communicative leading, and on this stage we want to get students into a lively conversation, into an interaction, something like that, but when we talk about presenting present perfect, what type of leadings can we introduce on this point, like here, so we need this communicative leading, but we later on we have to explain present perfect, so what communicative leading can we propose here? Do you have any idea? I have already mentioned before that usually we circle our grammar classes over some specific texts or we can say topics, right? So explaining grammar can't be taken solely, we can't explain grammar without a specific context, so probably it's a great idea and it's a great strategy as well to use some specific topic or pick a text which introduces a topic, all right? So what type of leading could you introduce here? If we know some functions present perfect has, we can actually offer a conversation related to sharing experiences, for example, like we can ask students about their previous experiences, about places they have already visited or something related to their activities that they have already tried, so introducing a grammatical point is not about presenting grammar from the very beginning, it's more about getting, it's more about offering students something familiar and something easy to discuss, so when you start planning your English grammar lessons, don't focus on giving all this grammar from the very beginning, start with something common to your English students, something they can relate to and another thing to mention here in the communicative leading, in this engaging stage, we don't want them to be corrected all the time, so how it might look when you have this communicative leading in your classroom, for example, when you teach group lessons, you offer them some like several ideas to discuss maybe some questions related to some specific topic and then you just monitor the activity and you don't interrupt their lively conversation if they have something at least close to it, right? Of course, it's important to note down some errors, it's okay, but what you have to do on this stage is to note them down by observing and then when it's over, when your students are done discussing and when you're like closing up the communicative leading, you would probably do some quick error correction, but it shouldn't be like to correct everything, to polish every mistake, it's not about it, so communicative leading is just to make sure that your students feel comfortable and they are acquainted with the topic, so that's probably the most important part to remember. And then when we are done with the engagement stage, we move on to the pre-teaching stage. Again, if you are familiar with the ESA strategy, this is where the study phase begins, so you pre-teach some vocabulary to a text or to an audio, for example, if your lesson is circled around an audio, for example, or a video, so you pre-teach some vocabulary and what's next. You can also offer some games related to vocabulary so that it's not that boring to memorize vocabulary or to drill vocabulary, so it should also be interesting for your students. And what's next? So if you have some specific text, the next point of this study stage would be reading for gist. So now please let me know, do you know what reading for gist is? So what type of reading is it? Have you ever tried to read for gist yourself? Like if you're an ESL student yourself or if you, I don't know, if you study something before presenting, for example. So are you familiar with the idea of reading for gist? So let me know over the comments section. Because this stage is extremely important, but sometimes when teachers are not that experienced, they simply ignore it. However, reading for gist is not just an activity, but it's a really great skill and strategy to learn for your students. Because for example, when you prepare your learners for some tests like IELTS or maybe some Cambridge exams, reading for gist is something super necessary to master. So let me know, what is reading for gist? So if you hear this question, please right now have this, just drop down several ideas. Yeah. All right, so here is just this idea highlighting the summary of the text. I should say that it's not about the summary, it's probably about understanding the general idea. So reading for gist is not when you, after that, you are able to explain briefly like what it is about and what was the first step, the second and so on. So it's just about understanding the general idea of the text. Probably it's about what is the main topic of the text, what happened in the text. Yeah, so something like that. So it's not about some specific details, it's just for understanding the idea. Right. And when you are done with this part of the study stage, you move on to the next one, which is pretty obvious if we take the previous one. So it's reading for detail. When your students are familiar with the specific text, when they have already taken this first time reading and got acquainted, yeah, that's right. So reading for gist is the same as skimming. That's true. So the next point would be to read for detail. This is usually something students try to do from the very beginning when they see the text for the first time. But it's actually always better to pre-teach this skimming strategy because skimming is crucial for like as a skill. Not every teacher teaches that. However, when it comes to real life experiences, reading for gist, so being able to skim texts is actually super important and super helpful. So when you teach your students, make sure you like at least attempt to explain what skimming is. And when you are done with that, you will move on to reading for detail. Okay. So when you are done reading for gist, the next point would be reading for detail. And reading for detail is just opposite to reading for gist, right? Yes, it's about finding some main points related to the text. Usually for this stage, there are some, for example, if we take textbooks, you would probably find some special questions to check out while reading or there could be like a true or false activities. So something like that, what helps to get the most important details out of the text. And yeah, the very last point to take would be the communicative follow-up, which is an opposite idea to the communicative leading. But communicative follow-up will be filled in, will be stuffed with those points you just introduced to your students. So for example, let's come back to the idea of presenting present perfect. Let me share my screen right now, because I have like something to share with you, something to show you. So I have this example from actually that workshop I visited last week. So here, yeah, let me just zoom it in if I can. So here you can see this text, which is taken specifically to explain the idea of present perfect. And students are introduced, students are given with this text about the most successful twins. It's an engaging topic. And what you do before reading is introducing some lively conversation, provoking to answer some questions, right? Like, do you know who twins are? Do you know any twins around? So something related to the specific point from the text. It's usually topic-based, not grammar-based, right? Although we want to explain grammar. When we introduce the topic, we would probably give this topic-based activity rather than grammar-based. So when you are done presenting this very topic, you move on to the study stage where you pre-teach some vocabulary. So probably the text contains several words which might be unfamiliar to your students. And here you want to make sure you explain every difficult phrases, words, etc. This is like some pre-teaching activity. And then the main study stage would be to read the text itself and to get exposed not just to vocabulary, but to grammar as well. So this very idea is actually called a guided discovery. It's when students discover some specific grammatical point, not knowing that they are actually exposed to it. But if you, for example, read this text, you would notice that there are places where present simple, not present simple, past simple and present perfect are combined. So this is the general strategy. What we want to do during this grammar presentation, we want our students to have this guided discovery. We don't want to give them everything. We don't want to explain everything from scratch at the very beginning. What we want to do is to help them to discover step by step. So that's probably the most fascinating insight I got from my workshop, from the workshop I participated in. So when you are done with the guided discovery with this reading part, the last thing is the communicative follow-up. And as for the communicative follow-up, you would probably need to have some other questions which are related to the text itself and the grammatical things in the text. So usually, if you use some books or ready-made lesson plans, it contains something related to both grammar and vocabulary. And you can just use it and organize in the way you need it. But most of the books, most of the course books, they are actually built on this very strategy. So what I would suggest here is that when you plan your grammar lessons, don't plan from scratch. Try to focus on taking some specific course book which is corresponding your students' needs, their level, and so on, and just take some of the best activities from that course book. So as for me, when I plan my grammar lessons or whatever lessons, the first thing I do is I go to the teacher's book which is usually together with that course book I use with some specific students. So for example, when I prepare for exams, I take those specific books and then check teacher's books for activities and guidelines for teachers. It's super convenient, super easy, and the thing is, you are a teacher, you are not a methodologist, you don't write books, and probably you are not the best person who will build the most outstanding grammar lesson just because it's how it works. So make sure you choose the most interesting content, the most appropriate activities, and you should be good. And the last point I would like to mention as well is that when you guide your students from the first like leading activity to the study stage and then to the engage stage, what you also have to do is to remember about eliciting. So guys, let me know, do you know what eliciting is? What is the strategy of elicitation? Have you ever heard of it? Have you used it in your classroom? So let me know. And as for eliciting, I should mention that if you take a TEFL course and when you start going from methodological part to some grammatical aspects, the final step would be to create a lesson plan. And our tutors at ITTT, they would like to see if you know about the strategy of elicitation or not. If you are able to use this strategy in your lessons precisely or not, because it's super important and it's a great strategy to not to test but to teach students. So it is specifically to guide students through different challenging parts of your lessons. Okay, so let me check the chat box. Okay, no comments on the eliciting strategy, so aren't you familiar with it? Let me know. Because eliciting is also super crucial and it's something interesting to implement in your teaching. Okay, just another moment. All right, so as for eliciting, it's the strategy when you actually ask questions. Yeah, right. So I'm not sure how to pronounce the name correctly, but Jeter introduces this eliciting strategy precisely. So it's yeah, when you elicit something from your students, you provoke some reaction. You ask questions when they ask questions, right? So you don't give direct answers, you just provoke your students thinking. This strategy is super important to make sure that you guide your students, not give them like everything they want. Because what you want to do as a teacher is to build this understanding when they create some rules and some knowledge on their own with your help. Yeah, awesome. Thanks guys. So you actually know about eliciting and it's super cool because this is the strategy we want to use when we teach grammatical points. That's correct. Yeah, and the very last idea I would like to share which actually impressed me a lot was this thing. It is called the 3F rule, where the last F is not actually F. So it's a deep tone, right, pH, but it sounds like F. So when we guide students from the first thing to the very last one, in terms of a grammatical aspect, what we want to explain, what we want them to unravel is form, function, and then phonology. If form and function are pretty clear and obvious, because it's something they come up with, not come up with, it's something they kind of notice when working with text, for example, phonology is something ESL teachers often neglect. And this is also a great misunderstanding, I should say, it's a great mistake doing as a teacher. Even if you are not a master of pronunciation or absence, phonology is still an important part to teach, even if it's not that connected to grammar itself. So if we, for example, take this example of present perfect as a grammatical point, how can we teach it from the phonological aspect? Do you have any ideas, guys? So let me know as well. What can we explain using this present perfect when we have this grammar lesson related to present perfect, and when it comes to phonology? What is so necessary to explain here? Okay, let me know. Do you have any idea? Yeah. And actually, here is a slide of this eliciting strategy. I don't know why I haven't showed it yet. But yeah, when when you start presenting the grammatical point itself on the study stage, you would use eliciting a lot, because you don't want to give out all of those cards in the beginning at the beginning, right? So you want your students think and provoke thinking. Okay, so what about phonology? What can we teach in terms of phonology? Okay, so does anyone have ideas? Okay, so all right. So as for phonology and present perfect, for example, we would probably use contractions or, for example, connected speech to explain some some phonological issues which might happen which might happen when we use present perfect. So generally speaking, the very last point, which is phonology, is still crucial when we work with grammatical aspects. So when you have your study stage and when you guide your students in this discovery, make sure you also explain how it sounds, because grammar is not something living on paper. When we work with written texts, it's pretty simple and clear how to use it, just implement this rule and that rule and you're good. But when we start using some specific grammar in speech, it's extremely different and sometimes we just have problems, right? So make sure that you still point out some phonological aspects as well. Okay, so that's pretty much for the grammatical strategies for that's all what I wanted to share. That's about my experience from the master class I took last week. But if you guys have any questions on grammar, on how to create lessons and I don't know what else, how to plan grammar lessons or whatever, just let me know over the comment section. I'll try my best to answer, okay? And let me just stop screen sharing, okay? So let's have a quick chat related to planning grammar lessons. So if you have any questions, just feel free to ask me. And I just want to remind one more time that the strategy that I have just shared is kind of a basic one. And if you aren't familiar with it, you can actually take a tuple course, the most basic tuple course, for example, because those strategies are introduced in the tuple course really well. And as for the ESA methodology, I personally learned about it when I took the tuple course with ITTT several years ago. So it really helped me to understand like, it helped me understand how to organize my lessons more or less precisely, because before that, I just had no idea how to teach grammar at all. But it's actually not that scary. That's a great point. Okay, so I should say that I am a little bit tired speaking. It's been like 45, 48 minutes already. All right, and there is this question. Okay, just one second. Okay, so inductive, okay, just one second. Inductive and deductive strategies are like opposite to each other. It's obvious. But when you teach grammar inductively, it's probably more related to theory than practice. And deductive methods, they are about provoking students thinking, and then trying to practice it. That's actually how I understand that. But I should say that this very idea of teaching grammar inductively or deductively is really specific. And probably, it's not the best approach to bear in mind when you plan your grammar lessons, because there are so many other ways how to do it easier. So to me, it's probably too challenging to consider teaching inductively or deductively. So it's just a matter of your preference probably. If you want to present grammar theoretically, then focus on the inductive method. And if you want your students to think and come up with some ideas related to grammar themselves, the deductive method would be your choice here. Okay. All right. And the next question is actually really good, because yes, teaching grammar, if you want to teach English in China or in any other countries around Asia, for example, TEFL certification or TESOL, for example, are really important because they are needed when you apply for this work visa. But I should also mention that every country has different rules and different policies. They also change a lot, especially after this pandemic situation. So those policies in China has changed already. And before deciding anything, try to Google and try to check out those governmental sites. And actually, if you're interested about teaching in China, I should recommend one of my previous live streams. It's been done a couple of months ago. Let me find the link, because it's super, super helpful. Okay, where it is. Okay. So just one second. I'm going to drop the link over the chat box. So here, if you follow the link, you will see the YouTube video from our ITTT channel. I did a live stream with my friend who has been teaching in China for seven years already. And he has been there since the beginning of this pandemic. And he didn't leave the country. And he has a lot of interesting and up-to-date information related to China. So if this location is interesting to you, make sure you watch that live stream, because I should say that all questions, all necessary questions are answered in that video. Okay. And speaking of TAPL course, yeah. So for some countries, not just for China, TAPL course is really important in terms of visa application. Okay. All right, guys. So do you have any further questions related to today's topic or maybe to TAPL? If not, we can actually wrap up, because we've been online for 55 minutes almost. But before we go, I just want to, yeah, no problem. Thank you for asking me, actually. So before we finish, I would like to invite you to my Facebook group. So I created this Facebook group to build this teaching community. And if you are interested to keep in touch, if you want to ask some further questions, you can just join in the group. And when you have your questions in mind, just feel free to ask there. I also try to share some useful content from time to time, but I don't really have time to do it. I'll try my best to get more or less consistent. And also, I would like to share some good news about myself. Recently, I've created an Instagram profile specifically for advertising my teaching services. And it's actually getting really nice there, because I get impressions and news. And some people ask me about teaching them. So if building your online teaching business is something interesting to you, you can also join in my Facebook group. And like, I am going to share my insights about this business, about this activity I'm doing. Yeah. So, and by the way, I also have done a lot of live streams related to online teaching. And if online teaching fascinates you a lot as myself, make sure you check out those live streams either on Facebook, on the Facebook group or on our YouTube channel. Yeah. I'm not a professor, but thanks a lot for your kind feedback. Yeah, I hope to see you guys once again next week. And yeah, what else? If you still, if you are still interested in taking a tuple course, just feel free to check out courses on the tuplecourse.net website. If you have any questions about tuple certification, maybe some specific courses, you can also ask me when you want. I'm open to communicate over the direct messages. So if you want to communicate with me sometime, just feel free to do that. That was a really productive live stream today. Thank you so much for joining in. And I hope to see you next week guys. So enjoy your day. Have a great week ahead and bye-bye. See you next week.


In the wake of the global hand washing day, a group has on the score the importance of the commemoration, especially in saving lives and disease prevention. These were the major throws at the sensitization of workers at the hotel here in Lagos. Plastic in these correspondents, Immanuel Lubberboken was at the sensitization program and now reports. The hand washing day is an international campaign aimed at promoting and hygiene worldwide. It emphasizes the importance of washing ends with soap and at critical points during the day. In 2008, GHD was celebrated for the first time with the aim of raising awareness and importance of hand washing to prevent diseases and infections. To commemorate the day, this organization is imparting the practice of cleanliness on its workers, with the belief that hand washing is a fourth step in reducing the spread of diseases. Citing the COVID-19 pandemic in 2020, Martins Isaac, the organization's managing partner of the size is the importance of hand washing and why they have embarked on this campaign. For us is that we're just trying to sensitize people and remind people on the importance of hand wash, you know, and you can see back in 2019, 2020 when we had the COVID-19, we all knew. At the meeting, I'm convinced I can take a micro term and aside the cobalt, keep our hands clean and that was the quickest and easiest way we were able to fight, you know, the COVID-19 and other germs that we deal with from time to time. Basically, our hands carry germs, you know, so and maybe it's just about someone serving your water with clean hands or hands that have germs in it here and you can easily get contaminated that way you can fetch your water, you drink the water. They say his government should not only be involved in setting up policies, but also in implementing them. Beyond policies, which I know in Nigeria we have good policies, I think one of the PCFs, the rehabilitation and surveillance contract, the group has reacted to our visions, the contract for the rehabilitation of potlents nationwide, they are voided to another oil cabal. Addressing a fresh brothen in Abuja, we have access to better water but when you go to the rural areas, you know, or people who don't have access to information, you know, it's quite a bit of a challenge. So beyond the government, you know, trying to assist and making policies, I think that we need to do more, you know, in terms of educating, in terms of sensitizing people, go to schools, teach children how to wash their hands, teach children about germs, you know, there should be a section that talks about preventive diseases, you know, it's a chance that, you know, we can prevent just by washing our hands. Some participants speak about involvement. Mostly people take hand washing for granted, but the recent COVID-19 pandemic is supposed to be a high hope now for everybody. Today we don't joke with the hegello, health, the hegello of cleanliness, there is a common say that cleanliness is next to godliness, and until we are conscious of this, honestly history may be repeating itself a million times, but of course, if we are all conscious that we have to keep our environment safe, then we can conquer a lot of challenges. We know germs, they don't have legs, they don't have hands. It is human beings that try to transport them from one place to another. So that is why washing of hands is important. We also said that your health is in your hands. If you don't wash your hands properly, it means wherever you have gone today, wherever micro-organizations are... We didn't prioritize the welfare of the student. There, national president of the Union's Court of Welfare made the call for an important help. He asked for companies to be... It also promotes the adoption of the simple yet impactful habit of washing with soap for everyone everywhere. Emmanuel Ulububukun, plus TV News. So you get notified about fresh news updates.


Some people may leave your life when you say no. I'm just going to tell you, and I've had lots of that in my life, let me tell you.  Anybody that is in your life, because you always say yes, isn't worth keeping. We'll just tell you that right off.


So I'm Stefan and today I want to talk about Some of the design work we did for our stable coin. That's called gyroscope And this is joint work with my co-founder aria-clagas month So, um, you imagine you want to build a stable coin So you have a you have a cryptocurrency and you want to keep it stable and in some senses always gonna look like this You have some kind of reserve of assets and then people can mint and redeem coins against that assets And that's gonna stabilize the price right if the price is too high they can They can mint new coins if the price is too low they can redeem coins. It's gonna stabilize the market price And we call the primary market mechanism Excuse me the primary market mechanism the thing that grants access to these assets and that intermediates between Minters and redeemers which are basically up to us and the asset reserve Now what are these assets well that depends on your design? It could be many different things in a sandwich share design It could be it's basically an equity share in a sense For something like a basis design. It's something like a bond And in a reserve back design at some portfolio of other assets and by the way, this is a design We are using for gyroscope. It's reserved back Now there are different situations we need to look at The kind of boring case is when the system is fully collateralized and all the assets are perfectly liquid Because then this is just basically a pricing problem price the reserve assets and the somewhat more tricky case is The system might be 100% collateralized, but not all of these assets might be liquid So you cannot necessarily pay them out when people redeem and Then there's the crisis situation where the system actually becomes under collateralized and then you need to decide what to do and My talk is going to be about the design of this component that basically designs what to do in such a situation What we are implementing for gyroscope is a reserve of only liquid assets So we are not really considering this case, but it would be a Maybe straightforward extension of what we're doing. So let's look at some examples of this if you look at dye You have the PSM or PEC stability mechanism and it basically looks like this that your reserve Almost only consists of USDC and this is what people sometimes say that dye has become where it's going in the direction of wrapped USDC The the numbers are like 60% or like the PSM USDC then you have another 20% of LP shares against USDC And of course in that situation Something you need to ask is are there many risks associated with that so for USDC, for example, there could be some regulatory risk Which may amount to counterparty risk censorship risk and so on Kind of the goal of gyroscope was to build something like a PSM 2.0 So how might you improve on this design and I think there are like two ways The first thing is you may want to diversify your reserves You may not want to hold only USDC And the second thing is to implement something like a programmatic risk control that Reacts autonomously to market conditions So that that kind of can be seen in two parts. The first one is if you have In dye the different PSM vaults are independent But you probably want to coordinate them somehow to react in the same way to market strategies and the other one is To price the stable coin depending on market conditions, especially when the system should the system become under reserved And this is kind of where we're going So kind of to to build such a system. There are like many different challenges and I just want to give you like the the super quick overview Basically, we want extra right so we have a reserve that consists of different asset classes that are probably structured in some way and And then you need to answer several questions like which of these which assets should that be Which risks are these exposed to how to structure the whole thing so that the risks are somehow contained How do you generate it on this on the whole structure? You probably want to price these things with oracles and so on these all things I'm not going to talk about but questions. We still had to answer for gyroscope And today I want to answer This mechanism basically the question is someone comes to your system the system may be under reserved or Illiquid to some degree They want to redeem a stable coin. What is the amount of assets you offer them? and To do that we introduce a more general tool Which is what we call the redemption curve and this is a general tool to analyze any stable coin design basically So the redemption curve is Following curve you have two axes on one axis you have the redemption level Which is basically the amount of stable coins that are getting redeemed And on the other axis you have the redemption price that the mechanism offers to the redeemer And now we assume Now we look at what happens when people redeem more and more And market conditions don't change for the beginning So nothing happens no prices change, but people just redeem more and more and Ideally, of course what you want is this curve can always redeem at a dollar because then you always stabilize your pack at exactly a dollar And the higher your curvature here is the less you support the peg as more and more people redeem Kind of the default that Is also happening for peg fear currency is that you try to support the peg as long as possible Until your reserve is empty and then you don't support it anymore And and kind of my argument will be that maybe this redemption curve is not ideal and many other redemption curves aren't ideal either So we can see kind of this this type of curve or that type of behavior in the in the real world or in the fiat world For example the tech on the bridge pound in the 90s was basically a continuous outflow From the from the bridge pound basically a continuous redemption of pounds against other assets until the central bank was no longer willing to support the peg And then you see this this kind of drop where some people made a lot of money I think the recent crash of the pound is probably not like that I can't say anything about that If we look at if we look at stable coins We've seen similar behaviors this chart is a little bit outdated But there was this period and like 2021 I like many creative stable coin designs were created and many of them crashed and in a somewhat similar way very abruptly I Want to look at one like design case study, which would be Faye the original design of Faye Which was also not very successful in its original form And so Faye had these direct incentives which basically means The the more of peg the whole system is the worse the price you're getting And that if you kind of look at it this leads to a redemption curve that is very steep and that looks about like this Which means that your peg is not going to be stabilized very long and then they remove the direct incentives and then their Redemption curve looked much much less steep And we can see kind of the effect of these like steep redemption curve here I hope this is kind of visible this like the price of Faye after launch And it had like a like a huge price drop with a lot of volatility I should probably talk about the the elephant in the room or maybe not an elephant anymore Senority chairs and the way I think about senority chairs is essentially That you redeem at $1, but your backing is an indulgence asset That's basically very very tied into your project itself, and this can lead to some negative feedback spirals So essentially it's the same story as from the fiat world before You provide redemption at a dollar Until the willingness of the market to buy your senority chairs is exhausted And then you basically crash very rapidly and I should probably show this right This is the supply right here this supply inflation at the same moment But it doesn't really matter because people don't want to the amount of senior chairs people want to buy it doesn't increase Or the amount of dollars people want to put into senior chairs. I should say I should point out one thing about this particular talk This was when I gave the first version of this talk This was not without precedent We had a very similar system Called iron you may remember which also crashed in a very similar way. So here you have the stable coin That crashed at the same time The endogenous collateral crashed also So so that that's not good and that's why we made gyroscope reserve backed and The basic idea of what I want to talk about today is maybe we should think about the redemption curve as a design problem And maybe we should choose a redemption curve that we think is useful and reasonable And then we go and implement that in our primary market maker So the the basic design is going to look like this right you remember this picture And we're assuming that the assets here are exogenous So we don't need to worry about these feedback effects But what do you want to do if the system is under collateralized or illiquid? And we have like like I want to give you these results in three parts First we thought about what are actually does it rata for a good redemption curve? What do we really want and then I'm going to show you one such curve that satisfies that is a rata And then I'm going to talk to you about how to actually implement that because as you remember the redemption curve assumes that No market condition change over time and of course that doesn't happen in reality So the step from picking a curve and then implementing is is making it dynamic And this is going to lead to this type of dynamic bonding curve if you want to think about it like that Um, great. Let's first think about what we would ideally want of our redemption curve The first thing I want to I want to notice that probably your collateralization should be Should stay above some lower bound your redemption shifts redemption curve should not exhaust your reserve If that's at all possible and the reason for that is to enable the system to recover later You if you exhaust your reserve, you're basically destroying your your system and that's bad And then you probably also want the redemption price to stay above a lower bound If that's possible to support the pack at least to some degree Of course, this is trivial. We usually want our stable going to be stable at a dollar You probably want some continuity continuity of that curve. You probably don't want these abrupt crashes and I would say that the main reason for that is to prevent speculation because these kind of discontinuous crashes Are something people could speculate on very easily and that could also lead to like all kinds of market upheavals And And then this is like a little bit of a bonus, but you want your redemption curve to be easy to use So probably what you want is you want the the execution if you redeem a certain amount of Certain amount of stable coins or stable coins can be called gyro dolls.  So the system should Also kind of think about what what happens what happens tomorrow? What happens when the system runs continuously? You should be able to regain your peg and of course you need to implement the whole thing on chain Yes, the first math equation so before I show you how we implement this I have to introduce this nice equation We assume that the redemption pressure is computed as a time discounted Some if you don't care about that, that's totally fine And now I'm going to show you one simplified design that satisfies almost all of the disiderata And this is a simplified redemption curve. We're not using this but it's good for explanation. So what the curve does is that? We support a Price of $1 so people can redeem at a price of $1 up until a certain amount of redemption so on this axis we have redemptions and and then We are gonna Drop the redemption price so that the redemption price is equal to the collateralization ratio And this is a sustainable way of doing it So for example, if your system is 80% collateralized the redemption price would be 80 cents And you can just do that indefinitely and redeem the rest of the money and of course this has all of the nice Properties almost all of them You don't run out of you don't run out of reserves You can actually configure a trade of that exists. Yeah, of course the longer you support a pack of $1 The lower your eventual collateralization is going to be but it's something that you can choose Exactly so so we have like this long-term survivability of the system If you want actually want to do this like this would be like the equation But of course the problem is that this is like this ugly discontinuous jump that I mentioned before And so what we really do is that we introduce a ligament linear segment there looks like this Where the price would first be a dollar then it would decrease as more and more is redeemed and then If it if it has reached a point where we have a sustainable collateralization ratio, it would just give you that price And if you want to do that the mouth to do this looks like this But it's like it's fine, right? It's fine. They're like case distinctions and fractions, but it's not that bad and One thing you you you can see here is that Governance can configure this using some hyper parameters. So you can say What is the minimum collateralization that I want of my system? And this is something that governance would set because it's actually meaningful parameter You can say what is the steepness here that I'm willing to tolerate Another parameter and then if you solve these equations gonna respond autonomously to these hyper parameters Now This curve is beautiful But it has the problem. It's not very useful Because it doesn't reflect reality because we assume there is a redemption pressure of zero We have some kind of initial Collateralization of the system which we call an anchor rate or we could be labeled as like our a And Then you start from there and the curve tells you what happens when you start at zero redemption pressure at the anchor rate Nothing changes in the market to implement that We need to live in a situation where the market will of course change and we can still use this curve And this is what I'm going to talk about today so the goal is make the whole thing dynamic make it react to the current market state and Gonna show you how to do it hopefully in a picture and How we do it goes as follows I showed you this curve and If you know your anchor collateralization, which is on this axis and you know a Certain amount of redemption pressure Then you can go and integrate the curve from before and it's gonna tell you what your Collateralization at that point is gonna be and that's up here And How if we do that for all possible? Sorry anchor values we get a three-dimensional surface and What we just discussed was if you know this and this you can compute this But it turns out that you can also do it in reverse So if you know the current collateralization of the system on this axis And the current redemption pressure here, which is something that you can just observe in in real time Then you can actually compute this initial Collateralization ratio which of course at this point is a purely it's purely a modeling tool But it tells you if nothing had happened in the market and we are now at the state Where should we have started if this model was true? Okay, so so many complicated words And so basically this theorem says that you can reconstruct that it's the monotonous the argument It's it's fine And and so then once you have the initial state We can offer redemption prices based on Based on this redemption curve as a model And that's pretty convenient Because it's a way to respond to current market conditions. It's completely autonomous governance only has to set Meaningful hyper parameters doesn't have to do anything in the moment And it's it's completely predictable for other people so everyone knows what's gonna happen So you have this you have this huge transparency advantage over a system where governance would just come in and then Make a vote and of course other market participants have no idea what the outcome of this vote is going to be Now I should probably talk about implementation because you might be looking at this theorem and you're like Yeah, this is great if you're doing pure math But we're not doing that at all and I'm gonna talk a little bit about implementation and The implementation works in two steps. The first like core idea is that You saw you remember the scary slide I showed you before with the like many formulas everyone in the room gas So that had a couple cases tinctions in it And if you do like the cross product of all the cases tinctions you end up with a bunch of regions and you can partition your space into all of these different regions and So you may believe me that this is possible The theorem is that you can actually detect in which region you are based on only the current market state And then it turns out that once you know in which region you are Computing like this value on this axis is very easy. It's basically solving quadratic equations then And that brings us to the algorithm, so we detect the region based on the current state We reconstruct the anchor state. We take that as a model And we compute our redemption amount, which is basically integrating over this exact curve. I showed you before And then when you like being very careful and you count all the things you have to do to get this is actually very cheap You just need to do some arithmetic and a little bit square root Right so this system has a number of interesting properties and I'm going to show you just just like to One result that you get like very easily is that there's no incentive to split up redemptions and like mathematically That's because you're computing an integral and you can always split up an integral in different parts And it doesn't matter If you compute the parts or the whole thing So mathematically, it's not very interesting You have a path deficiency result Which is basically that And this is like a little bit more interesting that the protocol state is going to improve over time So if you implement the system your reserve does not crash Completely to zero And people just come and redeem then your system is going to recapitalize itself over time and of course, this is exactly what we want we want long-term survivability of the system and This is what this looks like and Now I want to conclude So if you're taking away anything from this talk, it's that you can design your redemption curves when you're building a stable con system And this is a very attractive way to get good properties of your system It's also a very useful tool to compare different stable coins and to think about if the stable coin design is actually solid I showed you a design for one desirable redemption curve And then I showed you how to make that dynamic and make it react to market conditions and if you want to Kind of be be involved into how we actually do these things we have implemented this in gyroscopes dynamics stability mechanism Gyroscope is our new stable coin launches plant towards the end of the year And hopefully all these properties are going to make a gyroscope very robust if you're interested in the paper And you should scan this QR code and if you want to get in touch with us you can go here Or follow us here. Why did you guys choose a like a piecewise linear approach? For example and not something that's really smooth like a sigmoid or something like that other nice properties that you get out of This then you would not otherwise. Yeah, let me jump just jump back to the slide so the Should I give the honest answer or the line I'm gonna be on so so the honest answer is because it's easy to implement Because and like the reason is that this is linear so its integral is quadratic and Solving quadratic equations is easy and solving anything else is is hard So I have more of a philosophical question in the last Let's say two three centuries the tendency in the state-backed currencies has always been to leave paying to go Toward a free-floating money. Why do you think that in the crypto economy? We are seeing Resurgence of peg money that seem to be quite prevalent Yeah, yeah, that's a that's a deep question Wasn't expecting that Why why do we have a resurgence of packed coins I Think my intuition is that People think in USD or in some other fiat currency that is not really represented in crypto Maybe at some point we have a crypto native currency That that doesn't need a pack because it's very stable against other fiat currencies But I think we're not there yet and that's why we need to represent some Some kind of measure some kind of numeria that people are familiar with and that matters in people's lives Yeah, let me just add a little bit to that so It's a common strategy when you're kind of like developing a new economy to do something like a currency peg And it seems to work well in those situations because people want to use a more trusted Unit of account like a dollar and so I think that's has a large influence here But I also just want to note that the the autonomous monetary policy that we've been developing Can be more general than just maintaining a Currency peg you can choose parameters in different ways to do more arbitrary monetary policy to I would want to know how do you think about Once the system gets under stress and you you get to the redemption price like what would be the the mechanisms or the incentive to because it's kind of a I Think there is some loss of trust in the market at that point Well, how do you how do you think about how to regenerate a system and getting back to the back? Yeah, so that the gyroscope design Contains a number of other like lines of defense and sort of ways that that the reserve could replenish over time And so basically this monetary policy the idea is to buy the system time So that those other mechanisms might be able to kick in some examples of that is basically like Reserve assets are deployed in risk segregated ways, but they can still potentially earn some yield And so there's sort of a tendency to increase collateralization over time because of that and then there's also sort of this idea of forward guidance from the the the monetary policy itself like basically the As the out level of outflows this like time discounted some that that Stefan was saying Decreases over time then there's upward pressure on the peg from the reserve assets again kind of according to this This policy and then there's other mechanisms, too You can check it out in our docs and happy to talk more after after this as well