From the Document: "Stablecoins [hyperlink] are a type of cryptocurrency [hyperlink] that aim to maintain a stable value. There are several classes of stablecoins that each use different methods to try to achieve this, one of which is algorithmic stablecoins. While no precise definition captures all of their features, algorithmic stablecoins [hyperlink] typically use an algorithm or smart contract [hyperlink] to manage the supply of tokens and guide their value to some reference asset (for example a fiat currency, such as the U.S. dollar). Algorithmic stablecoins generally do not attempt to achieve value by holding a reserve of fiat-denominated assets with a value in a 1:1 relationship with the value of the stablecoin. Instead, algorithmic stablecoins use different mechanisms to control the supply or value of the stablecoin, including the minting or burning [hyperlink] of coins, rebasing [hyperlink], and arbitrage."
CRS Insight, IN11928
Congressional Research Service: https://crsreports.congress.gov/