Thursday, July 25, 2024

Luna Foundation Guard discloses use of assets under its custody.

The Luna Foundation Guard (LFG), the organization looking after the dollar peg of UST, has disclosed the use of various assets under its custody. In the past couple of months, LFG had been amassing Bitcoin to use in case the market imbalance affected the value of UST, its algorithmic stablecoin.

The Foundation spent almost all of its Bitcoin reserves, more than 80K BTC, in an effort to save the crashing UST. It tried this to no avail in three attempts. In the first attempt, LFG sold 26,281,671 USDT and 23,555,590 USDC for an aggregate of 50,200,071 UST. This was the initial defensive transaction against the depeg incident. The Foundation transferred 52,189 Bitcoin to trade with a counterparty for an aggregate of 1,515,689,462 UST. However, the LFG did not reveal the details of the counterparty.

This did not help restore the peg. On May 10, the LFG declared that Terraform Labs exchanged the last of its Bitcoin reserve when UST slumped to $0.75. This involved the sale of 33,206 BTC for an aggregate of 1,164,018,521 UST. Now, the Luna reserve has only 313 BTC. This shows that the Foundation deployed most of the Bitcoin it had in the defense effort. LFG also had BNB, and AVAX in its reserve. But it didn’t use them and it is yet to be seen how the Foundation would go about using them.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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