What are algorithmic stablecoins?
How do algorithmic stablecoins work?
What are some examples of algorithmic stablecoins?
Ampleforth (AMPL) – One of the first rebasing algorithmic stablecoins, pegged to the CPI adjusted 2019 USD.
Basis Cash (BAC) – Using the 3-token seigniorage system, stablecoin Basis Cash (BAC) maintains its 1 USD peg through the use of shares and bonds.
USDD – A decentralized stablecoin for the Tron ecosystem, launched in May 2022 by Tron founder Justin Sun.
UXD – An algorithmic stablecoin backed 100% by a delta neutral position, on the Solana blockchain.
UST – This algorithmic stablecoin made headlines in May 2022 when it lost its dollar peg amid a wider crypto market crash—precipitating a collapse in the price of Terra (LUNA), the cryptocurrency used to maintain its dollar peg.
The future of algorithmic stablecoins
Want to be a crypto expert? Get the best of Decrypt straight to your inbox.
Get the biggest crypto news stories + weekly roundups and more!