2 years ago
Luna Foundation Guard (LFG), the non-profit enactment holding Terra’s bitcoin reserves, confirmed connected Monday greeting that it had sold implicit 80,000 BTC implicit the past week to get TerraUSD (UST) successful an effort to support its crumbling U.S. dollar peg.
“Consistent with its non-profit ngo & absorption connected the wellness of the Terra ecosystem, opening connected May 8, erstwhile the terms of $UST began to driblet substantially beneath 1 dollar, the Foundation began converting this reserve to $UST,” LFG said successful a Twitter thread.
Singapore-based LFG works to cultivate request for Terra’s stablecoins and “buttress the stableness of the UST peg and foster the maturation of the Terra ecosystem.” It was successful complaint of acquiring and holding bitcoin to physique the UST reserves.
The instauration said it began transferring bitcoin funds to a counterparty “to alteration them to participate trades with the Foundation successful ample size & connected abbreviated notice.” That counterparty received northbound of 50,000 BTC successful speech for implicit 1.5 cardinal UST.
As the UST worth kept dropping, failing to sprout backmost toward its expected $1 peg, Terraform Labs, the tech startup down the improvement of Terra, sold 33,206 BTC for 1.16 cardinal UST connected May 10 “in a past ditch effort to support the peg,” LFG said.
As of May 16, LFG holds 313 bitcoin successful reserves, retired of 80,394 BTC it held connected May 7. The instauration besides holds a fistful of different assets, including UST and LUNA. The bulk of its LUNA is staked (locked up) “across a scope of validators to support against a imaginable governance attack” arsenic the token’s terms kept dropping adjacent zero and the magnitude of LUNA successful circulation skyrocketed.
“The Foundation is looking to usage its remaining assets to compensate remaining users of $UST, smallest holders first,” LFG said successful a final tweet. “We are inactive debating done assorted organisation methods, updates to travel soon.”
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