Decentralized Stablecoin
What is Decentralized Stablecoin?
Stablecoins that are algorithmic and unbacked by a central body are known as decentralized stablecoins. Both crypto-collateralized and non-collateralized stablecoins are available; however, the latter are less popular because they lack any form of backing. These are more decentralized than their fiat-backed counterpart currencies since everything is carried out through blockchain. TerraUSD is a prime example of an algorithmic stablecoin that also ties its investors’ returns to a 1:1 ratio.
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