Luna Foundation Guard is the organization responsible for safeguarding the Peg of UST (the stablecoin in the Terra ecosystem), and has now revealed the details of how it used Bitcoin reserves before the Terra ecosystem collapse. To stabilize the value of UST, the organization traded a portion of its bitcoins directly and a part on other dates. More than 80,000 BTC were included in the reserve.
Luna Foundation Guard Clarifies Reserve Movements
Luna Foundation Guard, an organisation charged with safeguarding the USD peg of UST, which is the Terra’s algorithmic stablecoin (LFG), has now spoken out and explained the uses of its assets. This institution was already in existence. amassedMore than 80K BTC. This was to be used in the event of market imbalances that affect the value of Terrausd (UST).
Social media reports claim that the foundation used almost all its BTC reserves to try to save UST. It was done in three separate operations. LFG was sold in the first operation. 26,281,671 USDT & 23,555,590 USDCFor an overall of 50,200.071 UST was involved in the first defense transaction against the depeg attack.
LFG also has a place. stated it:
Transferred 52.189 BTCTrade with a counterparty net of excess 5,313 BTCThey have all returned for an average of 1,515 689,462 $UST.
The counterparty was not identified by the company.
Last Measures
The peg could not be restored even with LFG intervention. LFG declares that Terraform Labs exchanged the last of the BTC reserve on May 10, when UST’s market price had touched $0.75. The transaction was a result of the saleOf 33,206 BTCAn aggregate total of 1,164.018,521 UST.
Reserve Luna is available now comprisedOnly 313 BTC were used, which means that the majority of BTC the organization owned was deployed for the defense effort. Others cryptocurrencies such as 39.914 BNB or 1,973,554AVAX, were also not used but are still in possession of the organisation. It is unclear how these cryptocurrencies will be used going forward.
LFG has provided statements that help explain how Terra depeg happened and how those funds were spent. Elliptic, which is a compliance and blockchain analytics company, conducted an earlier analysis and found that most of the funds went to Binance and Gemini. However, the company declared that it was “not possible to trace the assets further or identify whether they were sold to support the UST price.”
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