Are Algorithmic Stablecoins Safe?

In the search for stability on the blockchain, a wide variety of stablecoin models have emerged — each of which has its pros and cons. While fiat-backed stablecoins remain the most dominant, a new wave of algorithmic stablecoins has emerged in recent years, each of which hopes to provide a more decentralized price-stable asset.

Algorithmic stablecoins are different from simple asset-backed stablecoins in that they generally rely on algorithms, game theory and economic incentives to maintain their peg. This means they don’t need to rely on centralized issuers and treasuries to maintain their value but also leaves them potentially vulnerable to economic attacks — making it easier to knock them off peg.

On today's CoinMarketCap episode we are taking a look at Algorithmic Stablecoins.