April 29, 2021, 10:13AM EDT
• 16 min read

An overview of low-volatility tokens

Quick Take

  • Low-volatility tokens are loosely pegged to a certain price band in the near term, but their price can drift over time with their ever-changing target price determined by algorithms
  • Reflexer, Float Protocol, and Olympus DAO are some of the notable examples of low-volatility tokens that borrow a lot of features from existing decentralized and algorithmic stablecoins
  • These tokens need to generate organic demand regardless of their underlying algorithms that dampen short-term price volatility

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