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What is Stablecoin Trilemma? Why You Can’t Have All Three

The Stablecoin Trilemma shows that no stablecoin can fully optimize decentralization, price stability, and capital efficiency at the same time.

Fiat-backed, crypto-backed, and algorithmic stablecoins each favor two attributes but sacrifice the third.

Hybrid models, advanced algorithms, and risk management mechanisms are being explored to address the trilemma in future designs

The Stablecoin Trilemma reveals the difficulty of achieving decentralization, price stability, and capital efficiency in one stablecoin. Learn the trade-offs and emerging solutions.