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sUSD Depeg Sparks Terra Flashbacks, Raising Doubts on Algorithmic Stablecoins
sUSD Depeg Sparks Terra Flashbacks, Raising Doubts on Algorithmic Stablecoins
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The sUSD incident has highlighted the vulnerabilities of algorithmic stablecoins, which face technical challenges, regulatory pressures, and dwindling community trust. Despite once being hailed as a breakthrough in DeFi, algorithmic stablecoins now only account for 0.2% of the total stablecoin market capitalization. This has raised questions about whether algorithmic stablecoins can ever win trust.
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