An algorithmic stablecoin is a type of cryptocurrency managed by algorithms (i.e., smart contracts) to dynamically minimize the volatility of its price relative to a specific form of asset, e.g., US dollar. As algorithmic stablecoins have been growing rapidly in recent years, they become much more volatile than expected. In this paper, we took a deep dive into the core of algorithmic stablecoins and shared our answer to two fundamental research questions, i.e., Are algorithmic stablecoins volatile by design? Are they volatile in practice? Specifically, we introduced an in-depth study on three popular types of algorithmic stablecoins and developed a modeling framework to formalize their key design protocols. Through formal verification, the framework can identify critical conditions under which stablecoins might become volatile. Furthermore, we performed a systematic empirical analysis on real transaction activities of the Basis Cash stablecoin to relate theoretical possibilities to market observations. Lastly, we highlighted key design decisions for future development of algorithmic stablecoins.

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了解算法稳定币的波动性：建模，验证和经验分析

算法稳定币是一种由算法（即智能合约）管理的加密货币，用于相对于特定形式的资产（例如，美元）动态最小化其​​价格的波动性。随着近年来算法稳定币快速增长，其波动性大大超出了预期。在本文中，我们深入研究了算法稳定币的核心，并分享了我们对两个基本研究问题的答案，即算法稳定币在设计上是否易变？他们在实践中会波动吗？具体来说，我们对三种流行的算法稳定币进行了深入研究，并开发了一个建模框架以将其关键设计协议正式化。通过正式验证，该框架可以确定稳定币可能变得不稳定的关键条件。此外，我们对基础现金稳定币的实际交易活动进行了系统的经验分析，以将理论可能性与市场观察联系起来。最后，我们重点介绍了算法稳定币未来开发的关键设计决策。