I gave you the most dramatic example. So far no undercollateralized, algorithmically backed $1 stablecoin has sustained a reliable peg at scale over multiple years.

Zero. Nada. There was always somebody somewhere exploiting it.

TerraUSD USN USDN Basic Cash

All failures so far, every time a death spiral.

FRAX started as algorithmic and had to move to over collateralization

Same with DAI

You really can’t call them like that once they become backed by USDC

Your bailey:

> all algorithmically backed stablecoins have failed

Your motte:

> no undercollateralized, algorithmically backed $1 stablecoin has sustained a reliable peg at scale over multiple years