Add new article: Demystifying algorithmic stablecoins

[john-walter-munene]

This commit:

• Adds a new article: "Demystifying Algorithmic Stablecoins"
• Adds a cover image for the article

Summary by CodeRabbit

• Documentation
  • New comprehensive educational article on algorithmic stablecoins for users. Explains core mechanisms including seigniorage, collateralization, and rebasing models. Clarifies common misconceptions about backing and collateral in the industry. Provides detailed historical examples of successful and failed implementations. Discusses various stability approaches through reserves and over-collateralization. Highlights community engagement with the Djed Alliance.

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📝 Walkthrough

Walkthrough

A new educational article on algorithmic stablecoins has been added to the public articles directory. The article covers definitions, core mechanisms, common misconceptions, historical examples, and design approaches. No executable code or logic is introduced.

Changes

Cohort / File(s)	Summary
Documentation public/articles/demystifying-algorithmic-stablecoins.md	New article explaining algorithmic stablecoin mechanisms (seigniorage, collateralization, rebasing), addressing misconceptions about backing and collateral, and providing historical examples (UST, IRON, DAI, Djed)

Estimated code review effort

🎯 2 (Simple) | ⏱️ ~10 minutes

Suggested reviewers

• Zahnentferner

Poem

🐰 A new tale unfolds of coins that dance,
No collateral chains, just algorithmic chance,
Through UST's fall and DAI's steadfast way,
We learn what makes stablecoins sway,
The Djed Alliance hops along with glee! 🥕✨

🚥 Pre-merge checks | ✅ 3

✅ Passed checks (3 passed)

Check name	Status	Explanation
Description Check	✅ Passed	Check skipped - CodeRabbit’s high-level summary is enabled.
Title check	✅ Passed	The title clearly and concisely summarizes the main change: adding a new article about algorithmic stablecoins. It is specific, directly related to the changeset, and helps readers understand the primary purpose of the PR.
Docstring Coverage	✅ Passed	No functions found in the changed files to evaluate docstring coverage. Skipping docstring coverage check.

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Actionable comments posted: 0

🧹 Nitpick comments (1)

public/articles/demystifying-algorithmic-stablecoins.md (1)

11-11: Consider adding co-author to frontmatter metadata.

Line 11 mentions collaboration with "Dr. Bruno Woltzenlogel Paleo" but the frontmatter (line 3) lists only "Wen-Chiao Su" as author. For better attribution and discoverability:

1. Consider adding a co-author field to the frontmatter, e.g., co-author: "Bruno Woltzenlogel Paleo"
2. Or update the author field to include both names if the site's schema supports comma-separated or array values

This ensures both contributors receive proper credit in content metadata.

Also applies to: 77-86

📜 Review details

Configuration used: defaults

Review profile: CHILL

Plan: Pro

📥 Commits

Reviewing files that changed from the base of the PR and between 77563de and 2842a80.

📒 Files selected for processing (2)

• public/articles/demystifying-algorithmic-stablecoins.md
• public/images/Demystifying Algorithmic Stablecoins.webp

🔇 Additional comments (4)

public/articles/demystifying-algorithmic-stablecoins.md (4)

1-7: Verify image path and filename convention.

Line 5 specifies an image path with spaces in the filename: "/images/Demystifying Algorithmic Stablecoins.webp". Filenames with spaces can cause issues on case-sensitive filesystems and may require URL encoding in web contexts.

Confirm:

1. The image file actually exists at the specified path
2. Whether the codebase filename convention uses spaces or prefers hyphens/underscores (e.g., /images/demystifying-algorithmic-stablecoins.webp)

---

53-63: Verify historical claims about Terra UST and Iron Finance failures.

Lines 53-62 make specific technical claims about stablecoin collapse mechanisms. Confirm the accuracy of:

1. Terra UST (lines 53-55): The claim that UST "relied on growing adoption" and that "Luna Foundation Guard's substantial reserves" were "ultimately inadequate" needs verification against documented post-mortem analyses.

2. Iron Finance IRON (lines 58-59): The specific technical failure claim about using "a weighted average rather than real-time prices" and "slow adjustment of collateral ratios" should be verified against Iron Finance's published technical documentation or incident reports.

Both are foundational to the article's argument about design flaws, so accuracy is critical.

---

69-71: Verify current claims about DAI and Djed stablecoin performance.

Lines 69-71 assert:

• DAI: "collateralization ratio significantly greater than 100%" and "occasionally depegged" but "consistently managed to regain its peg"
• Djed: "none of Djed's deployments has lost their pegs" since inception, deployed "across multiple blockchain networks"

These are positive claims that merit verification:

1. Confirm DAI's current collateralization practices and documented depegging events
2. Confirm Djed's deployment status, networks it operates on, and peg maintenance history
3. Verify the date when Djed reached "inception" and whether all subsequent deployments have maintained pegs

---

42-42: Verify external links are accessible and current.

The article references external links that should be verified for accessibility:

• Line 42: Medium article on stablecoin trilemma
• Line 63: Medium article on stablecoin depegging
• Line 83: Djed Alliance official site (https://djed.one/)
• Line 86: Discord community invite (https://discord.gg/ggxP4ttHgN)
• Line 11: Author's Medium profile (@Zahnentferner)

Special attention: Discord invite links often have expiration dates. Confirm whether this invite has an expiration or is set to never expire.

Also applies to: 63-63, 83-83, 86-86