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How Do Hybrid Stablecoin Models Attempt to Solve the Security Issue?

Hybrid stablecoin models combine elements of collateralization with algorithmic mechanisms. They might be partially backed by assets (crypto or fiat) and use an algorithm to manage the peg for the uncollateralized portion.

This attempts to balance the security of asset backing with the decentralization and capital efficiency of an algorithm, creating a more robust system.

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