Algorithmic stablecoins aim to maintain a stable price by automatically adapting the stablecoin supply to meet demand. Algorithmic stablecoins up until this point have tried to address the scalability challenge in a flawed way: by trying to produce as many stablecoins for as little collateral as possible. For instance, the Basis type designs try to maintain stablecoins with no collateral. These and related seigniorage shares designs, based on "endogenous collateral", rely on a sense of self-fulfilling expectations about the system or its future cashflows. However, these cashflows are very fragile and can disappear in a crisis. Other newer attempts lie somewhere in between these types of designs and full reserve designs.