Чувар фондације Луна (ЛФГ) said on May 9 that it will lend out $1.5 billion worth of Bitcoin (BTC) and UST to defend the algorithmic stablecoin’s peg to the U.S. dollar.
Terra’s UST suffered a координисаног напада on May 8, which led to de-pegging from its $1 mark to below $0.992.
While the de-pegging lasted for only a brief moment, it was enough to spread massive FUD about the Terra ecosystem and renewed calls of it being a “Ponzi scheme.”
However, in a move designed to protect the algorithmic stablecoin from a future reoccurrence of this kind of event, the Luna Foundation revealed that it would be working to “proactively defend the stability of the $UST peg and broader Terra economy.”
1/ Током протеклих неколико дана, волатилност тржишта у свим крипто активама је била значајна.
Тржишна превирања се такође одражавају у неизвесним макро условима у протеклој недељи у свим старим класама имовине.
— ЛФГ | Чувар фондације Луна (@ЛФГ_орг) Може 9, 2022
LFG is not selling BTC holdings
LFG said it will loan $750 million in BTC and another $750 million in UST to over-the-counter trading firms to protect the stablecoin’s peg to the dollar. The UST loan is designed to accumulate more BTC to stabilize the market.
The foundation was established in January as a non-profit for the Terra ecosystem. It has купио over $1 billion worth of BTC over the past few months with plans to use the flagship digital asset as a reserve for UST.
1/ Савет за ЛФГ је управо изгласао распоређивање 1.5Б капитала (0.75Б у БТЦ, 0.75Б у УСТ) како би ублажио забринутост тржишта око УСТ. Још мало контекста зашто и како: https://t.co/TfaAPkzgUJ
— Да ли Квон? (@стаблеквон) Може 9, 2022
However, this move has raised concerns that the foundation was beginning to sell its Bitcoin holdings, a move that was vehemently denied by До Квон, the co-founder of Terra.
Према његовим речима,
(The) buys and sells of UST are not meaningfully directional now, we felt it was valuable to have capital ready to be deployed in the current market.
As markets recover, we plan to have the loan redeemed in BTC, increasing the size of our total reserves.”
Is Terra removing liquidity from UST?
The announcement came a day after it became clear that Terraform Labs removed liquidity from the UST stablecoin. According to transaction подаци, the firm removed $150 million worth of UST from Curve and још један $100 million soon after.
UST fiasco is very fishy.
– Terraform Labs removed $150m of UST liquidity from Curve yesterday
– 1 minute later, a freshly funded address bridged $84m of UST to Ethereum (Initiated bridging before TFL removed liquidity)
– 4 min later, it dumped the UST, triggering the sell-off- Мудит Гупта (@Мудит__Гупта) Може 8, 2022
Industry researcher Mudit Gupta questioned the move on social media, describing it as suspicious. However, Terra founder Do Kwon responded that the move was part of a plan to deploy the funds on the 4pool liquidity pool. He also asserted that the foundation had no incentive to de-peg UST.
– Уклонили смо 150 милиона УСТ са Цурве-а да бисмо се припремили за распоређивање у 4поол следеће недеље
– 84М депоновати не ми – лмк ако сазнаш ко
– Након што су неравнотеже почеле да се дешавају, уклонили смо 100 милиона УСТ да бисмо смањили неравнотежуОбв ТФЛ нема подстицај да депегује УСТ
— Да ли Квон? (@стаблеквон) Може 8, 2022
Од времена за штампу, LUNA was trading at $59.34, down 50% from its ATH.
Source: https://cryptoslate.com/terras-luna-foundation-to-lend-1-5-billion-btc-and-ust-to-otcs/