Quick TakeAlgorithmic stablecoins are tokens that are typically pegged to the value of the US dollar, by means of predefined algorithms and market forcesThere are an increasing number of projects aiming to create capital-efficient algorithmic stablecoins, such as FRAX and USTThey are crucial in the reduction of cryptocurrency markets’ reliance on centralized fiat-backed stablecoins However, they can also experience complete failure in edge cases, where the algorithms designed to maintain the peg becomes its own undoing