New Cardano algorithmic stablecoin evokes old fears for the community
According to its developers, the stablecoin project Djed will be pegged to the United States dollar and backed by Apart from this, it will be using another token as its reserve coin. The project highlighted that it will be overcollateralized and will have on-chain proof-of-reserves.
One community member was seemingly confused as to why another algorithmic stablecoin has come out despite Terra showing that they could go wrong. “I thought we already figured this out, algorithmic stablecoins, not the best option,” they wrote. Meanwhile, another Twitter user mentioned that they would rather keep using Tether.According to the community member, algorithmic stablecoins already proved that they are not stable.
Source
https://t.me/Cronos_Cardano_Ripple
