Amara finance: A brief overview of the development of algorithmic stablecoins and infrastructure construction
The risk of negative premium for algorithmic stablecoins is far greater than that of positive premium. At the same time, if a negative premium occurs for algorithmic stablecoins, users who have deposited into LP can still arbitrage through market repurchase. Additionally, a negative premium does not increase the liquidation risk of positions; rather, it reduces the debt ratio.
