Do Kwon Is Backing UST With Bitcoin – And Here’s What Else He Is Building - Ep.335
Unchained
Bridging Bitcoin into Terra's Ecosystem
This chapter focuses on the integration of Bitcoin solutions within the Terra ecosystem, outlining the deployment timelines and the effectiveness of various projects. It explores innovative financial mechanisms for using Bitcoin as a reserve for the UST stablecoin, while emphasizing user experience improvements and the importance of community governance in asset acquisition.
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
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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
- 3/10 BTC purchase
- $1 BTC billion purchase
- TFL x LFG relationship
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
Jump’s BTC reserve proposal
Recent worries about Anchor APY being sustainable
- Do said Anchor yield shouldn't be sustainable (marketing scheme)
- Arca + Polychain proposal: https://twitter.com/jdorman81/status/1502024302526304262
South Korea’s new President
SEC subpoena
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