With the new announcement that Cardano is launching an algorithmic stablecoin in 2023, many community members have voiced their concerns. By comparing the project with TerraUSD (UST), which caused huge losses in the crypto space in 2022.
Stablecoin Djed project will be pegged to the US dollar. and is backed by Cardano. Other tokens will also be used as reserves. Overcollateralized and there will be an on-chain proof-of-reserve.
But despite the assurances from the team Several community members also expressed concern, with some sayingleadcompared to the case with the broken UST.
“The stablecoins algorithm is not the best option,” a community member stated, while another Twitter user said they would continue using Tether as the stablecoins algorithm proved unstable.
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