There are 313 BTC, 39 914 BNB, 1,9 million AVAX, 1,8 billion UST, and 222,7 million LUNA (of which 221 million are currently staked) left in the organization’s reserve

Luna Foundation Guard sold $2,3 billion worth of bitcoins to support UST

16.05.2022 - 11:05

746

3 min

What’s new? On May 16, representatives of the Luna Foundation Guard (LFG), a non-profit organization created to support the Terra ecosystem, confirmed the sale of $2,3 billion worth of bitcoins to support the UST stablecoin. . The LFG representatives reported that they hope to use the remaining assets to compensate UST holders, primarily the smallest ones. This is reported on Twitter.

What else did the LFG representatives report? As of May 7, the LFG had 80 394 BTC, 39 914 BNB, 26,2 million USDT, 23,5 million USDC, 1,9 million AVAX, 697 344 UST, and 1,69 million LUNA in reserves. After the stablecoin depegging from the US dollar, the LFG converted reserves to UST. The organization directly conducted swaps on the network and transferred BTC to the counterparty so that it could transact with the LFG in large amounts and at short notice. 26,28 million USDT and 23,5 million USDC were sold for a total of $50,2 million. The LFG transferred 52 189 BTC to trade with the counterparty, minus a surplus of 5 313 BTC that was returned, for a total of $1,5 billion. On May 12, the LFG exchanged 883,5 million UST for 221 million LUNA and stake on a number of validators to protect against a possible governance attack as the number of tokens continued to grow. As of May 16, all transactions had been completed.

What events happened before? The analysts at Elliptic published an investigation according to which the LFG’s reserves were withdrawn to crypto exchanges and then disappeared without a trace the day after the collapse of the UST stablecoin and the LUNA token securing it.

Situation around Terra. On May 12, Terra developers announced that they would burn 1,38 billion UST to restore its peg to the dollar. The company explores the best way to destroy assets, with a special burn module to be opened for a while.

On May 13, Terra’s blockchain temporarily suspended its operations in order to develop a new recovery plan. On the night of Thursday to Friday, Binance halted deposits and withdrawals within the network. The exchange also delisted all trading pairs with Terra (LUNA) except LUNA/BUSD. At the same time, Terra’s native token issuance reached 7 trillion.

On May 13, the Terra community decided to roll back the network before the UST rate began to collapse. On May 14, Do Kwon proposed the idea of restoring the ecosystem by restarting the network with 1 billion tokens distributed between LUNA and UST holders, as well as a community pool to fund future development.

On May 14, Binance CEO Changpeng Zhao expressed doubt about the feasibility of Terra’s blockchain developers’ decision to conduct a hard fork and roll back the network to the moment before the collapse of LUNA and UST rates

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy