Cardano has announced the backing of an algorithmic stablecoin, Djed, which will apparently be pegged to USD, will be overcollateralized with Cardano and backed up with another token as its reserves, which will also have on-chain proof-of-reserves. However, many in the crypto community are sounding alarms for this approach, referring to the recent Terra algo stablecoin UST implosion.

I know the community has PTSD over the UST collapse and the major reasons for it was because of the algorithmic nature of that stablecoin. Will Cardano figure it out? I hope so otherwise we might stay in this crypto winter for f***** ever!

Written by: nikethereum.eth / Medium / Mirror