The first stablecoin. Launched on the BitShares blockchain in 2014, BitUSD was backed by BitShares tokens (BTS). BitUSD used the "seigniorage arbitrage" method to ensure that each BitUSD was equal to $1. The system was designed to withstand small fluctuations in BTS, but when BTS dropped dramatically in 2018, the system was unable to handle it, and it collapsed. BTS holders reclaimed some of their original deposit. See
stablecoin.