Buterin: How to create algo stablecoins that don’t turn into Ponzis or collapse By Cointelegraph


Buterin: How to create algo stablecoins that don’t turn into Ponzis or collapse

co-founder Vitalik Buterin has shared two thought experiments on how to evaluate whether an algorithmic (algo) stablecoin is sustainable.

Buterin’s comments were sparked by the multi-billion dollar losses caused by the collapse of the ecosystem and its algo stablecoin TerraUSD (UST).

1: Can the stablecoin ‘wind down’ to zero users?

2: Negative interest rates option required