Quote from: cryptoaddictchie on May 23, 2022, 05:20:20 AM

I think its inevitable with such case of terra ust. Their apy is really high compared to other stablecoin and thats make it more quite risky. Of course I hate to say it, that I am one of victim of it but other stablecoin too lack audit. Cant say that its a failed experiment but the lack of sufficient security measures were missed on this. Whales have managed to outrace them using their fund and thats the weakness they exploited. Decentralized or not once someone realize a flaw then it will literally be a bad result on the other end.

High percentage rates (APY) translates into higher inflation rates. The higher the inflation, the less valuable the currency you're holding into will be. What happened with UST is a result of complete mismanagement from the Terra team. If they would've done things right from the start, none of this would've happened in the first place. I'm afraid other algorithmic stablecoins will have the same fate as UST unless developers decide to improve them for the better.

It seems to me that TRON's USDD algorithmic stablecoin is the next one on the list to lose its peg. There's a 30% interest rate given to USDD holders on the TRON blockchain. This is even higher than what the Anchor Protocol offered on the Terra blockchain. If things are done right, decentralized stablecoins hold promise to bring banking to the unbanked. Whenever they'll become a success or a failed experiment is yet to be seen. It's still too early to determine this, so I'd say we should give decentralized stablecoins some time to mature before rushing ourselves to any conclusions. Just my opinion