In traditional markets, the term “capital efficiency” is often used to refer to the ratio of money that a company must spend to receive a certain return. It speaks to the return on investment a company receives for a certain investment, product or service. This term is often used in reference to marketing. For the crypto market — particularly for stablecoins — the way we think about capital efficiency is entirely different. In this chapter, we are discussing capital efficiency in crypto, and why fractionalized stablecoins like IRON are more efficient than their over-collateralized alternatives like USDC, USDT, DAI and others.