There are many stablecoins in the cryptocurrency world, promising to solve the long-standing issue of volatility. Most, however, are pegged to a singular fiat currency. In doing so, they are merely masking the problem, rather than solving it. Put simply, fiat-collateralized stablecoins are as prone to depreciation as their respective fiat currencies. On the other hand, crypto-collateralized stablecoins are just as susceptible to market fluctuations as the coins they’re attaching themselves to.
This called for an inventive solution that would counteract the volatility, ensure the coin’s stability, and enable Anchor token to become a truly stable store of value. The MMU algorithm we’ve developed represents that solution.