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So this stable coin is "100% backed by the asset behind it", like a dollar, which is "backed by 1% real assets (go fractional reserve money!)". What did I miss?

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1 dollar is backed by 1 dollar. 1 dollar in the bank is backed by 0.01 dollar.

And 1 stable coin is backed by 1 dollar in the bank. That means one stable coin is backed by 0.01 real dollar.

UST is not backed by dollars in any way, it's backed by assets that have a corresponding value in dollars.

So no, your statement is incorrect.

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