{"id":444420,"date":"2022-05-09T10:47:48","date_gmt":"2022-05-09T07:47:48","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/lfg-to-deploy-1-5-billion-to-bolster-ust-peg-and-build-btc-reserves\/"},"modified":"2022-05-09T10:47:48","modified_gmt":"2022-05-09T07:47:48","slug":"lfg-to-deploy-1-5-billion-to-bolster-ust-peg-and-build-btc-reserves","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/lfg-to-deploy-1-5-billion-to-bolster-ust-peg-and-build-btc-reserves\/","title":{"rendered":"# LFG to deploy $1.5 billion to bolster UST peg and build BTC reserves"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4114c6435c3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4114c6435c3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/lfg-to-deploy-1-5-billion-to-bolster-ust-peg-and-build-btc-reserves\/#%E2%80%9D_LFG_to_deploy_15_billion_to_bolster_UST_peg_and_build_BTC_reserves_%E2%80%9C\" >&#8221; LFG to deploy $1.5 billion to bolster UST peg and build BTC reserves &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_LFG_to_deploy_15_billion_to_bolster_UST_peg_and_build_BTC_reserves_%E2%80%9C\"><\/span>&#8221; LFG to deploy $1.5 billion to bolster UST peg and build BTC reserves &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvOWMwZTQ1OGYtNWFmOS00ZWNlLWEyOTMtN2I0OGQ4M2ViOTkwLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Amid the sharp pullback across Bitcoin (BTC) and the wider crypto market this week, the Luna Foundation Guard (LFG) is set to deploy $1.5 billion worth of capital to \u201chelp protect\u201d Terra USD\u2019s (UST) peg to the United States dollar. <\/p>\n<p>The Singapore-based nonprofit LFG is part of the Terra\u00a0ecosystem and is tasked with collateralizing the network\u2019s algorithmic stablecoin UST to keep its USD peg intact while also managing the network\u2019s reserves. <\/p>\n<p>While details are sparse at this stage, the LFG outlined on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> earlier today that it will first loan out $750 million worth of BTC to over-the-counter (OTC) trading firms to manage and trade the capital. <\/p>\n<p>Following on from this, once the market has stabilized, the LFG will obtain a 750 million UST loan \u2014 most likely from Terraform Labs\u00a0to re-balance its reserves. <\/p>\n<p>The LFG noted that the council voted to execute the plan after observing \u201csignificant\u201d market volatility across BTC, UST and Terra (LUNA) over the past several days. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">4\/ As a result, the LFG Council has voted to execute the following:<\/p>\n<p>&#8211; Loan $750M worth of BTC to OTC trading firms to help protect the UST peg.<\/p>\n<p>&#8211; Loan 750M UST to accumulate BTC as market conditions normalize.<\/p>\n<p>\u2014 LFG | Luna Foundation Guard (@LFG_org) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/LFG_org\/status\/1523512201088143360?ref_src=twsrc%5Etfw\">May 9, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nProviding further explanation on the move, Terraform Labs founder Do Kwon emphasized on Twitter that \u201cLFG is not trying to exit its Bitcoin position\u201d and is ultimately deploying the capital in the short term to strengthen UST in the short term will upping its BTC holdings long term:<\/p>\n<blockquote><p>\u201cWhile 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 to us in BTC, increasing the size of our total reserves.\u201d<\/p><\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ The LFG Council just voted to deploy 1.5B in capital (0.75B in BTC, 0.75B in UST) to allay market concerns around UST. Some more context on why and how: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/TfaAPkzgUJ\">https:\/\/t.co\/TfaAPkzgUJ<\/a><\/p>\n<p>\u2014 Do Kwon  (@stablekwon) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stablekwon\/status\/1523532474860539905?ref_src=twsrc%5Etfw\">May 9, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As the LFG\u2019s $2.91 billion reserves are primarily <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/datastudio.google.com\/u\/0\/reporting\/b31cc9e5-c54c-4418-a6ce-b332c57e82e9\/page\/4YBqC?s=or-T7NeGLew\">backed<\/a> by BTC by 91%, or $2.7 billion at the time of writing, the declining price of assets is forcing the entity to readjust its balance sheet to maintain UST\u2019s peg. At the time of writing, BTC is down 12.7% over the past seven days to sit at roughly $33,600, while UST is slightly off its peg at $0.99. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Bitcoin clings to $36K as data suggests BTC price sell-off came from short-term holders<\/em><\/strong><\/p>\n<p>Terra\u2019s native asset LUNA, which also plays a part in maintaining UST\u2019s peg via its burning and minting mechanism, has suffered significantly over the past week as well, dropping a hefty 24.5% to sit at $62.15. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/lfg-to-deploy-1-5-billion-to-bolster-ust-peg-and-build-btc-reserves\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; LFG to deploy $1.5 billion to bolster UST peg and build BTC reserves &#8220; Amid the sharp pullback across Bitcoin (BTC) and the wider crypto market this week, the Luna Foundation Guard (LFG) is set to deploy $1.5 billion worth of capital to \u201chelp protect\u201d Terra USD\u2019s (UST) peg to the United States dollar&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":444421,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvOWMwZTQ1OGYtNWFmOS00ZWNlLWEyOTMtN2I0OGQ4M2ViOTkwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,75493,122378],"class_list":["post-444420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-stablecoin","tag-terra"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/444420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=444420"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/444420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/444421"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=444420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=444420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=444420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}