Algorithmic stable coins are the holy grail of decentralized finance – not only do they allow full decentralization, but they also are extremely capital efficient as they do not require any collateral. The downside however is that pure algo coins tend to have a second equilibrium at zero where the protocol is dead and the stable coin holders lost a lot of money. In this episode, we go through the history of algo coins and see what happened to them (spoiler: almost all did not make it).

Mikkos twitter thread – https://twitter.com/moo9000/status/1523958008782458881