Do Kwon Is Backing UST With Bitcoin – And Here’s What Else He Is Building

Do Kwon is the CEO of Terraform Labs and a director at Luna Foundation Guard. On Unchained, he explains why LFG is spearheading a plan to partially back Terra’s $15 billion stablecoin UST with Bitcoin. He also dives into another project idea that would transform developer salaries into financial assets that, as far as I can tell, he has not yet spoken about publicly.

Part 1: Everything you need to know about Terra, UST, and BTC.

• how Terra works and why Do thinks UST will soon be the third-largest stablecoin
• why Do and LFG decided to back UST with bitcoin
• why Do thinks LUNA’s price will continue to appreciate despite UST’s new dependence on bitcoin
• how UST might perform if the price of a bitcoin were to crash
• why diversifying UST with different types of collateral could help Terra politically
• how LFG plans to use bridges, smart contracts, and an AMM reserve pool to secure its bitcoin
• why Do thinks Terra is now a Layer 2 project for Bitcoin
• who is deciding to purchase bitcoin and who determines what other assets to purchase as collateral for UST
• how a bitcoin reserve pool would help UST not de-peg from the dollar
• whether Do thinks Anchor’s 19%+ yield is sustainable and why Anchor is moving to other chains

Part 2: Do, the self-described “toymaker” of DeFi.

• why Do is fascinated with creating a fungible labor market
• how developer working hours could become a token traded on an AMM and used to take out loans
• why Do thinks developer salaries in crypto should be cyclical
• how on-chain identity and history will be similar to credit scores
• why Do is a personal fan of Thorchain – but is reticent to use it as a bridge for LFG
• why Do is interested in Prism Protocol
• what Do thinks the impact of a pro-crypto president will have on South Korea

Book events

Keep up on all the latest events here! 

https://www.laurashin.com/book/#tour-dates

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Upcoming Book Events

Wednesday, March 30: I’ll be speaking (remotely) with Six Senses about The Cryptopians at 2 pm ET. Be sure to save your spot soon – space is limited!

Tuesday, April 5: I will be doing a reading and signing hosted by the City of Miami Beach and Future Perfect Ventures at Sky Yard from 6-8 pm. Jalak Jobanputra, CEO of Future Perfect Ventures will be interviewing me. You need to RSVP by April 1 to dianafontani@miamibeachfl.gov.  

Saturday, April 9: I will be on a panel at the Annapolis Book Festival at 11 am. 

Tuesday, April 12: I will be at StartupGrind’s global event in Redwood City, which is focused this year on Web3 (time → TBD). 

May 4-7: I will be in conversation with author Jimmy Soni at the PBS Seattle Crosscut Festival, which takes place from May 4-7. 

May 23-25: I will be at the Oslo Freedom Forum which takes place from May 23 to 25. Details on these events are TBD. 

Episode Links

Do Kwon

• https://twitter.com/stablekwon
• Previous Unchained appearance: https://www.youtube.com/watch?v=683fXfedOZY 

Terra

• Twitter: https://twitter.com/terra_money 
• Luna Foundation Guard: https://lfg.org/team/

LFG Purchases

• Pomp – the $10B Bitcoin Bet on Stablecoins
• • https://pomp.substack.com/p/the-10-billion-bitcoin-bet-on-stablecoins?s=w
• 3/10 BTC purchase
• • https://twitter.com/LFG_org/status/1503680315969060864 
• $1 BTC billion purchase
• • https://twitter.com/terra_money/status/1496162889085902856 
• TFL x LFG relationship
• • https://twitter.com/stablekwon/status/1502225674840555523 

Terraform Labs proposal to make Terra inter-chain

• https://agora.terra.money/t/ust-goes-interchain-reasonable-strats-part-five/5024 
• Anchor Going Cross Chain to Avalanche

• https://twitter.com/CryptoHarry_/status/1504309092411920387 

Jump’s BTC reserve proposal

• https://twitter.com/terra_money/status/1506736478449127425 

Recent worries about Anchor APY being sustainable 

• Do said Anchor yield shouldn't be sustainable (marketing scheme)
• • https://twitter.com/stablekwon/status/1503154137420079107 

• Arca + Polychain proposal: https://twitter.com/jdorman81/status/1502024302526304262 

South Korea’s new President

• https://asia.nikkei.com/Spotlight/Cryptocurrencies/South-Korea-s-incoming-president-vows-big-cryptocurrency-push 

SEC subpoena

• https://www.coindesk.com/policy/2021/12/10/most-influential-2021-do-kwon/ 

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