The Luna Foundation Guard (LFG) lastly broke the silence and revealed precisely how a lot they spent to defend the UST peg all through the occasions of final week.
- As CryptoPotato reported, UST – the algorithmic stablecoin of its ecosystem – lost its peg and got here crashing final week.
- Because of how the protocol was designed, dropping the peg meant that merchants might redeem UST for LUNA in a large arbitrage that noticed the printing of over 6 trillion LUNA, inflicting its worth to go to $0 in a couple of days.
- It’s necessary to be aware that LFG had beforehand acquired quite a lot of cryptocurrencies to be utilized in emergency conditions like these. Unfortunately, it was for not – as the whole ecosystem got here crashing by.
- Today, LFG revealed precisely how a lot of their reserves have been offered in a bid to defend the UST peg.
- Prior to the occasions of final week, their reserves consisted of: 80,394 BTC, 39,914 BNB, 26,281,671 USDT, 23,555,590 USDC, 1,973,554 AVAX, 497,344 UST, 1,691,261 LUNA.
Consistent with its non-profit mission & concentrate on the well being of the Terra ecosystem, starting on May 9, when the worth of UST started to drop considerably under one greenback, the Foundation started changing this reserve to UST.
- Per the tweet, LFG did so through the use of on-chain swaps whereas additionally transferring BTC to a counterparty to allow them to enter trades with the Foundation in massive measurement and on brief discover.
LFG immediately offered 26,281,671 USDT, 23,555,590 USDC, transferred 52,189 BTC to commerce with a counterparty, web of an extra of 5,313 BTC that they’ve returned, for an combination of 1,515,689,462 UST.
- That mentioned, LFG has but to publish any transaction sheets indicating that the money was spent to defend the peg.
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