By …but what good is a token if its value is swinging wildly like a pendulum in a storm? This brings us to a crucial aspect of tokenomics: price stability. In the volatile world of crypto, where Bitcoin can surge or plummet by thousands in a day, the need for stable value gave birth to stablecoins. And within this family, a particularly fascinating (and sometimes controversial) member is the algorithmic stablecoin.
Price Stability in Algorithmic Stablecoins: The Digital Tightrope Walk
You might already be familiar with stablecoins backed by traditional fiat currency (like USDT or USDC, which aim to hold $1 for every $1 in a bank account) or even crypto-backed ones (like DAI, which uses other cryptocurrencies as collateral). But algorithmic stablecoins? They’re a different beast entirely. ….Read More.
