Can a Purely Algorithmic Stablecoin Ever Be Truly Decentralized and Secure?

Achieving both true decentralization and security simultaneously is a significant challenge for purely algorithmic stablecoins. While decentralization is achieved by removing central asset backing, security relies on the robustness of the underlying algorithm and the willingness of market participants to act rationally.

The history of algorithmic stablecoins shows they are highly susceptible to bank runs and game theory failures, suggesting a trade-off exists.