In this podcast episode, expert Kevin Zhou explores the intricate challenges and inherent risks of algorithmic stablecoins, focusing on the Neutrino Dollar (USDN) and Terra's UST. He explains how the unsustainable mechanics behind USDN's depegging exposed serious vulnerabilities in algorithmic models, driven by a cycle of short-term profit-seeking behaviors. Kevin also critically analyzes Terra's strategies and the potential fallout from UST's collapse, emphasizing the broader systemic issues within the crypto space that could trigger severe market consequences and provoke regulatory responses.
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