  Centralized monetary policy, leading to persistent inflation, is often
inconsistent, untrustworthy, and unpredictable. Algorithmic stable coins
enabled by blockchain technology are promising in solving this problem.
Algorithmic stable coins utilize a monetary policy that is entirely rule-based.
However, there is little understanding about how to optimize the rule. We
propose a model that trade-offs between the price and supply stability. We
further study the comparative statistics by varying several design features.
Finally, we discuss the empirical implications and further research for
industry applications.
