Recently, no news in the industry has been more sensational than the collapse of Silicon Valley Bank, which directly led to a feverish decoupling of fiat and stablecoins from the US dollar, resulting in a huge distrust of stablecoins in the market.
Although algorithmic stablecoins have been receiving a lot of attention, the short life cycle of tokens like LUNA and UST has led to the realization that these tokens themselves are not completely immune to volatility. Especially when it comes to huge events like the Black Swan of LUNA in 2022, stablecoins can also become decoupled from their pegged currencies, a phenomenon that also means they can deviate from their pegged value and create a crisis of trust.
Based on the lessons learned, the Array team provides maximum stability from a longer-term development perspective in two ways: on the one hand, the Array protocol does not anchor stablecoins, but rather designs stable-growing hyper-stable coins through a homegrown AI algorithm system. Under this premise, Array also sets a safe and secure floor price to protect users’ interests.
On the other hand, in the Array ecosystem, by pledging $ARA, users can not only get the pledge proceeds but also have the option to mint to generate $USDR. With the increase of the backing funds again, it significantly increases and enters the positive cycle.
Thus, the above two double guarantees in the Array ecosystem largely make the overall price of $ARA grow steadily and permanently.
It is worth mentioning that Array leaves everything to the market to run freely. When the market demand increases and the supply remains the same, then the consequent value increases. For early holders of $ARA, the fewer participants, the less selling pressure, and ultimately the better for everyone in the Array ecosystem.
Array has always been committed to a “user-first” service philosophy and has been doing one thing from the beginning to the end – to protect users’ interests and maximize their benefits.
“The trust of the cryptocurrency community is fragile and precious, and Array’s priority is to ensure the fairness and security of its users,” said the Array team leader.