Quote from: tvplus006 on May 30, 2022, 10:04:00 AM

As we have seen, there is a big difference between stablecoins secured by collateral assets and algorithmic stablecoins. And as we can see, it is decentralized algorithmic stablecoins that have problems with their peg backed dollar, while DAI does not face such problems. At the moment, another algorithmic stablecoin DEI is suffering a fiasco, the price of which has dropped to 64 cents per dollar.

Of course. Both algorithmic and collaterized stablecoins have their differences. But most people don't know this, so one decentralized stablecoin losing its peg would make the public believe others are doomed as well. I think there's a future for algorithmic stablecoins as they could improve decentralized finance for the better. It'll be up to developers to introduce mechanisms that will help protect algorithmic stablecoins from losing their peg in a highly-efficient manner. What happened with UST should serve as a pivotal point for other algorithmic stablecoins to improve for the better.

DAI is the best decentralized stablecoin right now, but I think there's still room for growth for other decentralized stablecoins to take the world of decentralized finance ("De-Fi") by storm. Regulations will surely come in, but they won't be 100% effective due to the way decentralized stablecoins are designed. Who knows what the future holds for this exciting industry? Just my opinion