The Luna Foundation Guard (LFG) said on Monday that it will lend hundreds of millions of dollars in bitcoin and the stablecoin UST to protect the latter’s peg during a period of market turbulence.
UST, the algorithmic stablecoin related to the Terra crypto ecosystem, dipped below its targeted $1 parity on Sunday, according to The Block, though it has already recovered ground since Saturday’s low. On Binance, UST is currently trading at $0.9955 vs USDT at the time of writing.
LFG stated in a tweet thread that it would…
The tweet goes on to say…
Terraform Labs co-founder Do Kwon, Terraform Labs head of research Nicholas Platias, and Jump Crypto president Kanav Kariya are among the members of LFG’s governing council.
According to an announcement post at the time, the Singapore-based non-profit organisation was created in January to support the Terra ecosystem as well as “the sustainability and stability of Terra’s algorithmic stablecoins.”
So, LFG had gathered $1 billion to create a bitcoin-based reserve that would act as a backstop for UST’s peg. LFG had more than $3 billion in bitcoin in its reserve as of earlier this week.
Kwon stated in a following tweet thread after the publication of this report..