Tag: TerraUSD collapse

Algorithmic Stablecoins: How They Work

Algorithmic Stablecoins: How They Work

Algorithmic stablecoins use smart contracts to maintain a $1 peg without holding cash reserves. They work by adjusting supply through minting and burning, but past failures like TerraUSD show they're risky. Hybrid models with partial backing are now the safer path forward.

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