Forex Reserve

“The $UST Forex Reserve is an LFG initiative to provide a further layer of support for the $UST peg using assets that are considered less correlated to the Terra ecosystem, like Bitcoin,” the official Terra Twitter account announced today .

“One common criticism of algorithmic stablecoins is their reflexive nature and the hypothetical risk of a ‘bank run’ scenario where demand to sell the stable outstrips supply in a way that causes compounding price decreases in both native tokens,” the Terra account tweeted later in the same thread.