3 ms·
Dai might have been algorithmically backed but it’s now a flavor of usdc since it’s backed in its majority by usdc. So far all algorithmically backed stablecoi
by seviu 1y ago
Dai might have been algorithmically backed but it’s now a flavor of usdc since it’s backed in its majority by usdc.
So far all algorithmically backed stablecoins have failed. Remember Terra Luna.
- immibis 1y ago> So far all algorithmically backed stablecoins have failed. Remember Terra Luna. So that's a sample size of 2, and from those 2, 1 has failed. Not exactly "all"
- seviu 1y agoI gave you the most dramatic example. So far no undercollateralized, algorithmically backed $1 stablecoin has sustained a reliable peg at scale over multiple years. Zero. Nada. There was always somebody somewhere exploiting it. TerraUSD USN USDN Basic Cash All failures so far, every time a death spiral. FRAX started as algorithmic and had to move to over collateralization Same with DAI You really can’t call them like that once they become backed by USDC
- immibis 1y agoYour bailey: > all algorithmically backed stablecoins have failed Your motte: > no undercollateralized, algorithmically backed $1 stablecoin has sustained a reliable peg at scale over multiple years