OK so my philosophy on "algorithmic stablecoins"
1) sometimes their market cap goes up, which is cool I guess
2) the whole notion of a "stablecoin" that isn't backed by something you're confident will retain most of its value makes no sense
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Very true, BUT the argument is that as the mcap grows and liquidity increases, volatility will disappear or be minimal. Do you think that’s viable?
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I guess you are referring to $AMPL? Surprisingly, since its inception it has managed to maintain its median of $1.02 despite huge swings that per their playbook, should tighten over time
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the *price* retains that because of the rebases
the *market cap* isn't stable
You can indeed get super rekt by $AMPL if you time your positions wrong. Elastic supply adds another factor for traders to watch. IMO it's too early to judge, as you could say similar things about Bitcoin in its early days, why buy into it since its drops 80% every now and then?