Do Kwon Is Backing UST With Bitcoin – And Here’s What Else He Is Building - Ep.335
Unchained
The Future of Anchor's Interest Rates
This chapter explores the sustainability of Anchor's nearly 20% interest rate amidst crypto market fluctuations. It discusses the protocol's shift to a dynamic interest rate system and its expansion to new blockchain networks for consistent lending yields.
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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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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