About Algorithmic Stablecoins
Algorithmic Stablecoins is based on algorithms balancing a circulating supply of the asset itself. In simple words, it issues more coins when the price rises and reduces supply when the price falls. With the recent rise of algorithmic stablecoins, let’s check some of the most potential ones.
AMPL, a cryptocurrency which changes supply daily, the Ampleforth protocol automatically adjusts supply in response to demand; YAM is an experimental coin, Yam Finance seeks to create an elastic supply to seek eventual price stability; Dynamic Set Dollar, or DSD, an ERC-20 self-stabilizing decentralized censorship-resistant non-collateral backed USD stablecoin; BASE, a token by Base Protocol, whose price is pegged to the total market cap of all cryptocurrencies at a ratio of 1 : 1 trillion; Empty Set Dollar, or ESD, an elastic-supply USD stablecoin not bound by limitations; FRAX, a cryptocurrency by Frax Finance, partially backed by collateral and partially stabilized algorithmically.