New Cardano algorithmic stablecoin evokes old fears for the community
“I thought we already figured this out, algorithmic stablecoins, not the best option,” a community member wrote on Twitter. With the new announcement that Cardano is on its way to release an algorithmic stablecoin in 2023, various community members expressed concerns, comparing the project to Terra USD (UST), which caused great losses within the crypto space in 2022. According to its developers, the stablecoin project Djed will be pegged to the U.S. dollar and backed by Cardano (ADA). 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. Despite the assurances given by the team, various community members expressed concerns, with some bringing the recently collapsed UST to the conversation. 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 th...