With the new announcement that Cardano is on its way to release an algorithmic stablecoin in 2023, various community members expressed concerns, comparing the project to Terra USD (UST), which caused great losses within the crypto space in 2022.
Apart from this, it will be using another token as its reserve coin.
The project highlighted that it will be overcollateralized and will have on-chain proof-of-reserves.
I thought we already figured this out, algorithmic stablecoins, not the best option,” they wrote.
Cointelegraph reached out to Djed but did not get a response.
Source: Cointelegraph