You can't simultaneously be stable while also gaining in value. Remember the golden rule of trading: in order for someone to sell an asset for a price, someone else must want to buy that asset for that same price. Luna continually going up must destabilize Terra. The trick is that you moved all the instability to one side of the equation, trying to pretend it's not there.

It's a scam on its very face because it's promising a stable, perpetual motion machine.

> which is not backed by anything.

I mean it's backed by an algorithm...but that's obviously worthless

Words like “backing” have specific meaning in the world of financial regulations. This use is wildly different from that meaning.

Doesn't stop the legions of commenters who will join discussions like these to proudly assert that the US dollar is "backed by" the US economy, the US military, etc.

What kind of algorithm is that anyway? return 1; ?