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2. How does UST work to retain its peg against the USD? (A) The UST is an algorithmic stable coin, which means that there is

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2. How does UST work to retain its peg against the USD? (A) The UST is an algorithmic stable coin, which means that there is a fixed amount of U.S. dollars backing it, stored in a Brinks high security vault in Korea. (B) The UST is tethered to a blockchain, which adjusts supply and demand according to the price levels on a particular day. This typically keeps the price within 1 USD. (C) It always exchangeable with $LUNA for $1. Whenever a $LUNA user buys UST, more UST is minted, and $LUNA is destroyed. (D) Every time there is a threat to UST from speculative short attacks, a fork is created which transforms it from proof-of-work to proof-of-stake

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