Analyzing Algorithmic Stablecoins Exploits PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Analyzing Algorithmic Stablecoins Exploits

Time Stamp: August 4, 2021 1:58 PM

August 4, 2021, 1:58PM EDT

• 14 min read

Analyzing Algorithmic Stablecoins Exploits PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Quick Take

  • Algorithmic stablecoins are tokens that are typically pegged to the value of the US dollar, by means of predefined algorithms and market forces
  • There are an increasing number of projects aiming to create capital-efficient algorithmic stablecoins, such as FRAX and UST
  • They are crucial in the reduction of cryptocurrency markets’ reliance on centralized fiat-backed stablecoins 
  • However, they can also experience complete failure in edge cases, where the algorithms designed to maintain the peg becomes its own undoing

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Source: https://www.theblockresearch.com/analyzing-algorithmic-stablecoins-exploits-112840?utm_source=rss&utm_medium=rss

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