Terra which is among the top 10 crypto projects based on market capitalization achieved a milestone recently for its UST. The nonprofit organization LFG (Luna Foundation Guard) reported that this protocol reached its maximum daily release of its stablecoin UST. The milestone was achieved because of high interest shown by entities involved in crypto asset mining.
The protocol of Terra is seeing a significant increase in the issuance number of UST. According to LFG that supports Terra ecosystem and stabilizes its value, this protocol has achieved its peak UST issuance. It maintained this level for many days because of increased demand for the stablecoins pegged to the dollar.
LFG said that investors in need of UST are checking secondary crypto markets. It said people are using the Curve pool for obtaining UST, causing the pool to lose its balance.
The DeFi protocol Curve trades in pegged tokens and stablecoins with no slippage. It acted directly and used its fund to balance the pool. The organization’s Governing Council took this decision. The transactions will happen over two weeks.
The foundation said that more bitcoins will be purchased with the proceeds of this swap. The goal is to bolster the organization’s reserve that it keeps to control and stabilize the UST value when market imbalances occur. This decentralized forex asset reserve was launched on February 23 after selling tokens worth $1 billion.
The funding investors include VC companies such as Defiance Capital, GSR, Republic Capital, Tribe Capital and ‘Jump Crypto and Three Arrows Capital’. This initiative has the support of Terraform Labs’ cofounder Do Kwon. According to him, the purpose of this initiative is to secure the dollar peg of UST.