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Bailout Fund, Backstop or Bouncy Ball? Here's How LFG's Bitcoin 'Reserve' Might Work

Developers of the fast-growing UST stablecoin say the coin's $1 value peg isn't "backed" by anything – just a blockchain-based algorithm. So why does it need a multibillion-dollar bitcoin reserve in case of an emergency? How would that work?

Updated Apr 9, 2024, 11:38 p.m. Published Apr 22, 2022, 3:36 p.m.
TerraForm Labs founder and CEO Do Kwon (CoinDesk TV, modified by CoinDesk)
TerraForm Labs founder and CEO Do Kwon (CoinDesk TV, modified by CoinDesk)