Luna Foundation Guard says it will lend out $1.5 billion in BTC and UST to defend stablecoin peg

-The Luna Foundation Guard (LFG) will lend out hundreds of millions of dollars worth of bitcoin and the stablecoin UST in order to defend the latter’s peg amid a period of market volatility.

-In a tweet thread, LFG said that it would “will proactively defend the stability of the $UST peg & broader Terra economy, especially under volatility and the uncertainty of macro conditions in legacy markets.”

-LFG’s governing council includes Terraform Labs co-founder Do Kwon, Terraform Labs head of research Nicholas Platias and Jump Crypto president Kanav Kariya, among others.

-The Singapore-based non-profit group was formed in January to support the Terra ecosystem as well as “the sustainability and stability of Terras algorithmic stablecoins,” according to an announcement post at the time.

-In February, The Block reported that LFG had raised $1 billion to build a bitcoin-based reserve intended to serve as a support mechanism for UST’s peg. As of earlier this week, LFG held more than $3 billion worth of bitcoin in its reserve.

20210818 War On Stablecoins Luna Foundation Guard says it will lend out $1.5 billion in BTC and UST to defend stablecoin peg
Luna Foundation Guard says it will lend out $1.5 billion in BTC and UST to defend stablecoin peg 2

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