UST aftermath: Is there any future for algorithmic stablecoins?

TerraUSD (UST) is an algorithmic stablecoin that is pegged at $1.00. But, on the evening of May 19, it was trading for $0.083.

This isn’t supposed to happen, of course, but last week UST, along with its affiliated coin (LUNA), performed a sort of death spiral that “wiped nearly $50 billion of investor wealth in a few short days,” according to NYDIG’s May 13 newsletter.