Algorithmic Stablecoin
By CoinGecko | Updated on Aug 13, 2021
Algorithmic stablecoins are tokens pegged to a fiat currency which is usually the US dollar, purely through software and specific conditions. For example, as the price rises, the algorithm may issue more coins, and when the price falls, it purchases them off the market.
Related Terms
Private Keys
The alphanumeric string which allows transactions from the cryptocurrency address
Node
Within the blockchain network, the nodes are computers that connect to the network and have an updated copy of the blockchain
Impermanent Loss
Temporary loss of funds due to volatility leading to divergence in price between token pairs provided by liquidity providers.
Goblin Town
A term used to describe the market's persistent downtrend, synonymous with "bear market".
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