Pro
Algorithmic Stablecoins Continue Decline
Key Insights
- Vader Protocol announced on December 29 it would sunset its algorithmic stablecoin due to design similarity with Terra’s failed UST and failure to find a new design.
- A broader decline in algorithmic stablecoin activity reveals that a sustainable algorithmic stablecoin breakthrough remains as elusive as ever, as investors choose stability over unproven designs.
- Liquid staking derivatives have been the big winners heading into the new year. Stakewise and Lido saw market cap increases of 65.4% and 47.7%, respectively.
Top of Mind
On December 29, Vader Protocol announced it would sunset its algorithmic stablecoin. Due to the stablecoin’s design similarities with Terra’s failed UST, the team spent the past few months searching for a new design, without a breakthrough.
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Jerry joined Messari as a Research Analyst after working in management consulting. He graduated with a B.S. in finance and a minor in computer science from Indiana University's Kelley School of Business.
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