Before the #Luna crash, the stablecoin market was generally divided into three main types:

(1) Supported by legal currency

(2) Supported by crypto assets

(3) Algorithm supported

After the death of #UST , it became clear to many that purely algorithmic stablecoins were based on a "recursive social belief" and did not provide a reliable stability solution. This realization has redirected attention to stablecoins that rely on collateral.