Ethereum Founder Talks Terra Crash: “Algorithmic Stability” Is Bullshit | Investing.com

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Co-founder Vitalik Buterin has his thoughts on the catastrophe of last week’s collapse of Terra and its algorithmic stablecoin.

In a tweet on Saturday, ethereum educator Anthony Sassano suggested that the cryptocurrency industry should “stop experimenting” with Ponzi schemes, algorithmic stablecoins, yield farming and other “unsustainable bullshit.” , and focus on blockchain applications in other areas such as decentralized identity and public goods financing.

His post was supported by Buterin, who responded by saying he “very agrees with this.” Buterin wrote:

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“Very agree with this, a quibble that ‘algorithmic stability’ has become a propaganda term, and by putting them in the same bucket as secured stable assets like DAI/RAI to legitimize them, we need to really Emphasize that the two are very different.”

In Buterin’s view, “algostable” is used as a promotional term to compare unsecured stablecoins to secured stablecoins such as DAI/RAI.

DAI is an Ethereum-based stablecoin managed by Maker Protocol and its Decentralized Autonomous Organization.

“We need to really stress that the two are very different,” Buterin said. He had expressed concerns about unsecured stablecoins weeks before the collapse of TerraUSD() and its sister coin LUNA.

Earlier this year, Terra founder Do Kwon boasted on Twitter that the success of UST would be the end of DAI, saying “DAI will die at my hands.”

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