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I'm confused. I understand wanting to have a reserve fund to help maintain a peg. National currencies do this as well, including selling their reserves to prop

I'm confused. I understand wanting to have a reserve fund to help maintain a peg. National currencies do this as well, including selling their reserves to prop up their own currency when needed. However, why would a stablecoin put its reserved in Bitcoin; an asset that is highly correlated with the entire crypto ecosystem, and highly volatile relative to the asset against which they want to maintain a peg.

rory 4y ago
They had a small amount of other "stablecoins" as well [0]. I'm guessing it was some mix of an ideological opposition to holding actual USD and a desire to speculate on the ecosystem, which the market allowed for a time. [0] https://twitter.com/LFG_org/status/1526126703046582272 https://twitter.com/LFG_org/status/1526126703046582272