Algorithmic Stablecoins — In Search of the Holy Grail

Algorithmic stablecoins are among the most discussed and controversial instruments in DeFi. A few weeks ago, we explored traditional fiat-backed stablecoins such as USDT and USDC. Today, we dive deeper into the complex and less explored world of algorithmic stablecoins, which aim for stability without direct asset backing.

In this video, we'll thoroughly explain algorithmic stablecoins, their various types, how their price stabilization mechanisms function, and why many of them fail. We'll also analyze real-world examples of algorithmic stablecoins: Basis Cash, Empty Set Dollar, TerraUSD, Frax, Iron Finance, RAI, and Float Protocol.

• 🔹 What are algorithmic stablecoins and how do they work?
• 🔹 Why did Basis Cash and Empty Set Dollar fail?
• 🔹 Terra (UST) and Frax — successful examples of algorithmic stablecoins
• 🔹 The collapse of Iron Finance: what went wrong?
• 🔹 RAI and Float Protocol: next generation stablecoins not pegged to USD
• 🔹 The future of algorithmic stablecoins: risks and prospects