Terra Collapse Could Spell End for Algorithmic Stablecoins
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Algorithmic incentives for stablecoin pegs remain an unsolved problem, head of portfolio management at Securitize said Regulators have promised rules to protect investors, but lawmakers haven’t yet…
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Sonic Labs has called off the launch of an algorithmic USD stablecoin because of the new regulations in the U.S. The current proposed STABLE Act includes a ban on algorithmic stablecoins for two years. Andre Cronje agreed with the decision and mentioned previous disappointments such as TerraUSD. Sonic Labs has…
Ethereum competitor Cardano (ADA) has teamed up with blockchain payments ecosystem COTI to launch a new algorithmic stablecoin. In a new blog post, COTI says that Djed, the first-ever algorithmic... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Go to…
Key Highlights Vitalik said well-designed ETH-collateralized algorithmic stablecoins should be viewed as genuine DeFi. He argued that shifting USD counterparty risk to market makers is a meaningful improvement over fiat-backed models. Buterin rejected USDC yield strategies, saying they do not change DeFi’s core trust assumptions. Ethereum Co-Founder Vitalik Buterin has…