Stablecoins & Real-World Assets

Algorithmic Stablecoin

A stablecoin that tries to hold its peg through code and incentives, typically by minting and burning a companion token, rather than relying mainly on reserves. The model's high-profile failure came with TerraUSD in 2022, which collapsed and wiped out tens of billions in value. US law now restricts new designs that rely only on a companion token.

General education, not investment, legal or tax advice. Markets and regulation change quickly: where a definition depends on current law or on a recent event, check the latest coverage before relying on it.