In the midst of the cryptocurrency market crash, the Luna Foundation Guard (LFG) plans to give away thousands of millions of bitcoins to support the pegging of Tera USD in US dollars.
Luna Foundation Guard (LFG), a Singapore-based foundation, is an integral part of the Terra (Luna) blockchain and was established to act as a safeguard to the Terra network’s stablecoin UST so that it maintains its relationship with the USD help keep it.
According to a recent report from The Block, the Terra algorithm’s UST stablecoin has dropped below $1, although the stablecoin has recovered from its Saturday lows. At the time of reporting, the value of UST is $0.9959.
LFG announced on Twitter that the foundation will actively defend UST stability and expand the Terra economy, especially under legacy market volatility and macro situation uncertainty.
LFG Isn’t Trying To Get Out Of Its Bitcoin Position
While details are not complete at the moment, early today, LGF’s Twitter account said it would first deploy $750 million worth of bitcoin to over-the-counter (OTC) trading firms to trade capital. ,
Later, once the crypto market stabilizes, LFG will have a $750 million UST loan from TerraForm Labs to help it rebalance its reserves.
Additionally, Terraform Labs founder Do Kwon claimed via Twitter that “LFG is not trying to exit its bitcoin position” but that this act of lending capital in the short term will make UST stronger.
LFG, a Singapore-based non-profit organization, was founded in January to act as a support system for the Terra algorithm’s stablecoin UST.
Following this, in February, an announcement was made that LFG had raised $1 billion to build a bitcoin-based repository to aid UST’s peg system.
In the past seven days, Terra (LUNA) has fallen over 20% in the ongoing crypto market crash. Concerns were raised as Terra’s UST stablecoin pulled back below $1.