What Is a Fractional Stablecoin? Think Terra 2.0 – But Safer?

Jenny

Well-known member
Not all stablecoins are 1:1 backed anymore. Enter: fractional stablecoins.
They combine:


  • Part real assets (like USDC)
  • Part algorithmic backing
    This model was infamous in Terra’s collapse but is being refined by others now.

📊 I’m putting together a thread comparing fractional vs fully backed vs algorithmic stables. Want to be tagged?
 
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