Luna Foundation Guard Breaks The Silence and Reveals Just How Much Was Expended To Protect UST’s Peg

Luna Foundation Guard (LFG), finally broke the silence by revealing how much they spent to protect the UST peg during the events of last Week.

UST – the algorithmic stablecoin of its ecosystem – lost its peg and came crashing last week.

Due to the way the protocol was constructed, traders could exchange UST for LUNA. This led to a huge arbitrage in which over 6 trillion LUNA were printed, causing the price to drop to $0 within a matter of days.

It’s important to note that LFG had previously acquired a number of cryptocurrencies to be used in emergency situations like these. Unfortunately, it was for not – as the entire ecosystem came crashing by.

LFG has revealed today how much of its reserves were sold to help defend the UST Peg.

Their reserves were as follows: 80,394 Bitcoin, 39,914 BitCoin, 26,281,671 US Dollars, 23,555,590 USDC and 1,973,554 AVX.

Consistent with its non-profit mission & focus on the health of the Terra ecosystem, beginning on May 9, when the price of UST began to drop substantially below one dollar, the Foundation began converting this reserve to UST.

The tweet stated that LFG did this by using on-chain trades and also transferring BTC (to a counterparty) to allow them to trade with Foundation in large amounts and on short notice.

LFG directly sold 26,281,671 US Dollars, 23,555 5,590 USDC, and transferred 52,189 BTC in order to trade with a counterparty. Net of excess 5,313 BTC that they had returned, this totals 1,515,689.462 UST.

LFG has yet not posted transaction sheets showing that money was used by the Peg to defend it.

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