Dai might have been algorithmically backed but it’s now a flavor of usdc since it’s backed in its majority by usdc.
So far all algorithmically backed stablecoins have failed. Remember Terra Luna.
So far all algorithmically backed stablecoins have failed. Remember Terra Luna.
So that's a sample size of 2, and from those 2, 1 has failed. Not exactly "all"
Zero. Nada. There was always somebody somewhere exploiting it.
TerraUSD USN USDN Basic Cash
All failures so far, every time a death spiral.
FRAX started as algorithmic and had to move to over collateralization
Same with DAI
You really can’t call them like that once they become backed by USDC
> all algorithmically backed stablecoins have failed
Your motte:
> no undercollateralized, algorithmically backed $1 stablecoin has sustained a reliable peg at scale over multiple years