Vitalik: How to create algo stablecoins that don’t turn into ponzis or collapse

2022.05.27 10:21

Vitalik: How to create algo stablecoins that don’t turn into ponzis or collapse

Ethereum co-founder Vitalik Buterin has shared two thought experiments on how to evaluate whether an algorithmic (algo) stablecoin is sustainable.

Buterin’s comments were sparked by the multi-billion dollar losses caused by the collapse of the Terra (LUNA) ecosystem and its algo-stablecoin TerraUSD (UST).

1: Can the stablecoin ‘wind down’ to zero users?

2: Negative interest rates option required

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