Top 10 Popular Algorithmic Stablecoins

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00:00Welcome back to Decentralized News. In today's video we are looking at the top 10 popular

00:06algorithmic stable coins. So what are stable coins? First of all they are just a type of

00:11cryptocurrency that tracks real world assets like the US dollar or the euro and due to the

00:17volatility in the cryptocurrency market investors sometimes need to park their funds in stable

00:23assets and that's where stable coins come into play. So you've got collateralized stable coins

00:29such as USDC, USDT and you've got some algorithmic stable coins that sort of cryptocurrencies that

00:39are also pegged to real world assets but they use smart contracts or algorithms instead of

00:44fiat collateral reserves. There are numerous stable coins or algorithmic stable coins and

00:51they use different mechanics to maintain their peg but usually they use a dual token system

00:58for example if for one algorithmic stable coin minted you burn one dollar worth of a particular

01:06token which is the native token of that ecosystem and the smart contracts also automate the process of

01:12regulating supply and demand and in addition users also receive incentives for their participation

01:19as smart contracts are just lines of code there are also risks associated with these algorithmic stable

01:27coins. Obviously we've seen a lot of this come to fruition especially with the case of Luna UST which

01:35are deep pegged and showed how very volatile and vulnerable these algorithmic stable coins can be in terms of

01:46maintaining stability but today we're just looking at some of the most popular ones that are in the market

01:51currently. There's Neutrino USD which is USDN an algorithmic stable coin that tracks the US dollar

02:02and it was created on the Waves blockchain and it consists of three tokens Waves, USDN and NSBT and

02:10Waves is the native token of the Waves blockchain of course pays for transaction fees it also serves as

02:17collateral for USDN and one USDN minted you burn one dollar worth of Waves token and NSBT is a

02:25recapitalization and governance token that ensures the USDN collateral reserves and has its stability and

02:34staking USDN also holders are incentivized to earn rewards of up to 15% APY and USDN is also available

02:42for trading on KuCoin, MEXC, Uniswap and some other exchanges you can always find the best cryptocurrency

02:48exchange reviews on decentralized.news so that is Neutrino at number one N-E-U-T-R-I-N-O-U-S-D

03:00Terra Classic USD of course everybody now knows about this this is one that seemed to have gone

03:07through a catastrophic de-pegging event just last month Terra USD, UST is supposed to have been a

03:15algorithmic decentralized stable coin paid to the US dollar the holders were staking that UST for 20%

03:23APY through Anchor protocol and after the crash UST sits now way below the one dollar mark sometimes

03:34i think it's in the pennies who cares at this point and of course they've now forked the blockchain and

03:41the original Terra USD now called Terra Classic US and USTC and there's now a new coin Luna 2.0 and

03:51USTC is still available on Binance, Bybit, Wabi, GateIO etc i would stay away from that one i would stay

04:00away from a lot of these to be honest with you but FEI USD is another decentralized stable coin paid to the

04:07US dollar built on Ethereum. TribeDAO is responsible for issuing the stable coin runs two assets stay

04:13face stable and the tribe governance coin found on GateIO, Uniswap etc. SUSD is another one also on

04:22Ethereum and it tracks the price of the US dollar using oracles such as Chainlink and SUSD is primarily

04:30created for decentralized exchange and offers traders and investors access to digital assets with zero

04:36slippage the protocol also has the NSNX token if you want to know more about synthetics go to

04:42decentralized news we've got a very detailed review there you can also stake NSNX to earn rewards and

04:48SUSD is available on KuCoin, GateIO, Uniswap, FRAX is another one a fractional algorithmic stable

04:55coin paid to the US dollar built on Ethereum also has a two token system FRAX shares FXS we've done a review

05:02on that on that on this channel and a governance token FRAX which is the stable coin and you know

05:08it is a fractionally collateralized the protocol also holds some USDC reserves adoption increases FRAX

05:15intends to hold Ethereum and Bitcoin as part of their collateral reserves we've seen UST trying to try

05:20that as well so hopefully this will go well for them FRX is available on GateIO, Uniswap full reviews on

05:28our main site USDX is another one another algorithmic stable coin it's built for the cover DeFi network

05:34it's uh also on cover swap and users can pretty much deposit their cryptocurrencies and borrow USDX

05:43tokens to participate in the DeFi protocols in the cover ecosystem seller dollar CUSD is an algorithmic

05:50stable coin again built on seller blockchain uh the reserve deploy smart contracts that uses a

05:56portfolio of cryptocurrencies to expand the contract supply uh CUSD similar to MakerDAO's lending

06:02protocol CUSD collateralized by digital assets including the native token seller BTC ETH and other

06:07stable coins also available on wabi gate.io and cool coin seller euro is another one algorithmic stable

06:15coin tracks the euro built on the seller blockchain and uh also uh you know uses other uh assets to

06:23collateralize itself to collateralize itself sell or BTC ETH and available on uh wabi gate.io uh Uniswap as well

06:31Ampleforth is another algorithmic stable coin pegged uh to the US dollar has been out since 2019 uh the

06:39protocol is built on Ethereum it aims to be an elastic and under diluted currency so one ample is always equal

06:45to one point zero nine dollars achieves this by an automatic uh adjustment process for uh ample holders or

06:54ampl holders this is the token for example if the price of one amp is equal to two let's say two dollars

07:0218 a wallet holding the one amp will be adjusted to two amp tokens so that the price of one ample is

07:10always equal to that one dollar zero nine cents on uh at all times and it's available on ftx cool coin

07:19gate.io should you be using uh algorithmic stable coins that is a big question the sum they're still

07:25new to the space i personally would not play around with this at this point unless something gets proved

07:32that this is actually a mechanism that actually works currently some have worked for a little while

07:37and things have always gone bust i'm not technically sound enough to understand the mechanics in full

07:43and to actually consider every possible scenario that could lead to a possible de-pegging event

07:49or things of that nature i think a lot of people didn't foresee and some people didn't foresee what

07:54was coming with the Terra Luna so i think you would need to do a little bit more research before you get

08:01into these algorithmic stable coins as maybe stores of uh some sort of a value at that point if you're

08:09trying to protect your digital currencies from just a regular market volatility and not go back into fiat

08:17but all the best with that guys do your own research don't forget to check out the links in the

08:23description to my books tokenized trillions uh blockchain applied if you want to know more about

08:28real world asset tokenization on the blockchain being you really want to check out uh tokenize

08:34trillions we deal with uh real estate tokenization equity uh and a whole lot of other real world

08:41assets in blockchain applied i pretty much go into detail about the different types of use cases of

08:48distributed ledger technologies across numerous industries including healthcare supply chains uh automation

08:55uh you know the public sector uh financial markets of course and uh insurance and uh so much more so

09:04this is uh something you would enjoy i'm sure also if you want to check out some of my digital books

09:09they're all available online everywhere just look me up heat on china and also make sure you go to our main

09:18site decentralized.news for the best cryptocurrency exchange reviews defy platform reviews also a whole host of free

09:24free tools and uh some uh things that you can use to navigate your way within this uh cryptocurrency

09:31industry if you want to know more about nfts and all that sort of stuff cool tools on our site so please

09:37support us don't forget to join our telegram and our discord server as well and to give us a like

09:43share and a subscribe turn on that notification bell let me know what you think are any of you holding any

09:50uh algorithmic stable coins at the uh algorithmic stable coins at the moment how do you feel about that

09:54in light of everything that we've seen happen to terra uh usd uh or ust and that whole lunar ecosystem

10:03like share subscribe i'll see you in the next peace and love always guys

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