How did TerraSDR work?đ
TerraSDR was a synthetic stablecoin, which means that it was not backed by any physical assets. Instead, it was backed by an algorithm that maintained the peg to the SDR.
The TerraSDR algorithm worked by adjusting the supply of TerraSDR tokens. If the price of TerraSDR fell below the peg to the SDR, the algorithm would increase the supply of TerraSDR tokens. This would cause the price of TerraSDR to rise. Conversely, if the price of TerraSDR rose above the peg to the SDR, the algorithm would decrease the supply of TerraSDR tokens.
