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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?

TerraForm Labs founder and CEO Do Kwon (CoinDesk TV, modified by CoinDesk)
TerraForm Labs founder and CEO Do Kwon (CoinDesk TV, modified by CoinDesk)