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The LFG Foundation Behind Project Luna Breaks Silence and Reveals How Much It Was Spent Defending the UST Stablecoin

The LFG Foundation Behind Project Luna Breaks Silence and Reveals How Much It Was Spent Defending the UST Stablecoin

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Answer The LFG Foundation Behind Project Luna Breaks Silence and Reveals How Much It Was Spent Defending the UST Stablecoin

The Luna Foundation Guard (LFG) finally broke the silence and revealed exactly how much it has spent defending the UST correlation throughout last week’s events.

As we mentioned on BTC earlier, the algorithm-based stablecoin UST for the Terra ecosystem lost its peg and crashed last week and fell below the $1 value.

Given how the protocol was designed, the loss of peg meant that traders could exchange UST for LUNA in a massive balancing act that saw more than 6 trillion LUNA printed, bringing its price down to $0 in a few days.

It is important to note that LFG has previously acquired a number of cryptocurrencies for use in emergencies like this.

Read:Soon.. Binance platform will add the option to trade cryptocurrencies against local currencies

Unfortunately, the foundation could not protect its stablecoin and the entire ecosystem collapsed.

Today, LFG revealed exactly how much of its reserves have been sold off in an effort to defend the digital stablecoin peg.

Prior to last week’s events, LFG’s reserves consisted of:

  • 80,394 Bitcoin
  • 39,914 billion dollars
  • 26281671 USD
  • USD 23,555,590
  • 1,973,554 AVAX
  • 497,344 UST
  • 1,691,261 LUNA

In line with its non-profit mission and focus on the health of the Terra ecosystem, and beginning on May 9, when the price of the digital stablecoin UST began to drop dramatically below $1, the Foundation began transferring this reserve to UST.

According to the tweet, LFG did this by using swaps while transferring Bitcoin to the counterparty to enable them to enter into high volume trades on short notice.

LFG directly sold its reserve in installments in the amount of:

  • $26,281,671
  • $23,555,590

52,189 BTC were transferred for trading with a counterparty, with a surplus of 5,313 BTC they returned, totaling 1,515,689,462 UST.

Read:DeFi scheme fraud withdraws and steals users’ funds

LFG has not yet published any details about the above transactions with only noting that the reserve was spent to defend the peg.

Of course, things will not become clearer until some time passes, as it is difficult, including fraud or falsification of transactions, especially since there are institutions and individuals who are watching and following step by step the movement of Terra reserves.

Read also:

What happened to Terra’s bitcoin reserves when UST and LUNA crashed?

FBI arrests CEO of EminiFX for fraud


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