Unchained Unconfirmed: Why Terraform Labs Cofounder Do Kwon Is Unfazed by US Regulators - Ep.285
Oct 29, 2021
Do Kwon, co-founder of Terraform Labs, dives into the world of decentralized finance and the challenges it faces under US regulations. He explains the purpose behind their stablecoin, TerraUSD, and discusses the innovative Mirror protocol. Kwon reveals why he remains undeterred by the SEC’s scrutiny and shares his thoughts on effective crypto regulation. He emphasizes the need for a global approach to regulation and the importance of robust security measures in DeFi, especially after the recent Cream Finance hack.
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Terra and TerraUSD
- Terraform Labs develops Terra, a Layer 1 blockchain with DeFi products built around the stablecoin TerraUSD.
- TerraUSD, unlike Tether or USDC, is decentralized and algorithmic, using on-chain incentives to maintain its dollar peg.
Mirror Protocol's Purpose
- Terraform Labs created Mirror Protocol to enhance TerraUSD utility, focusing on making it easy to spend and attractive to hold.
- Mirror Protocol offers synthetic assets tracking equities, commodities, and ETFs, expanding market access for users globally.
SEC Investigation and Lawsuit
- The SEC is investigating Mirror Protocol, a synthetics protocol similar to others that have faced regulatory scrutiny.
- This investigation led to Do Kwon and Terraform Labs preemptively suing the SEC.