Tag: algorithmic stablecoins and their risks
Understanding Algorithmic Stablecoins and Their Risks
What Are Algorithmic Stablecoins? Have you ever wondered how algorithmic stablecoins maintain their value? These digital currencies use complex algorithms and smart contracts to adjust their supply dynamically, keeping their price stable compared to traditional assets like the US dollar. By utilizing these mechanisms, they aim to avoid volatility while still benefiting from the decentralized…