Charge DeFi: How Algorithms Create Stability in a Decentralized Way

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The cryptocurrency market grew 600% year-to-date, with its value now standing at a staggering USD 2.8 trillion according to data from cryptocurrency market analytics company, Footprint Analytics. This has been fueled by a surge in development and investment into the space, triggering a need for stable assets to underpin evermore volatile asset pairs. Consequently, there has been a rise in the number and value of stablecoins in the cryptocurrency market. Currently, there are 74 stablecoins according to the latest data, with a combined value of just under USD 165 billion. 

The most popular stablecoin, Tether, operates several fiat-stablecoin pairs, including USDT, EURT and GBPT. It alone is worth USD 78.2 billion, representing a 47.3% share of the total value of the stablecoin market. However, as has been demonstrated by the number of audits of Tether’s actual fiat holdings, tethered stablecoins have inherent centralization and subsequently and existential risk. 

Charge DeFi is an algorithmic crypto token with an innovative new “rebase” mechanism implemented to maintain stability. The mechanism adjusts the circulating supply of $STATIC using price-elastic tokens to increase the price when it is below a peg. This article will examine Charge DeFi’s solution to algorithmic stability, explore how it works and compare it to the competition in the stablecoin space. It will then analyze the impact of algorithmic stability on the algorithmic space and the wider cryptocurrency market. 

But first, let’s take a look at Charge DeFi itself. 

Charge DeFi is a combination of an algorithmic crypto token and rebase mechanics. A stablecoin is