The Luna Foundation, which supports the Terra blockchain, is seeking $1 billion in capital to peg its UST stablecoin to one dollar.
TerraUSD (UST), a stablecoin indexed to the US dollar, experienced a massive drop to $0.61. The asset is currently trading at $0.91.
Luna Foundation wants to raise capital from the industry’s largest investment firms and market makers, according to various sources. The deal, which is currently being negotiated, offers investors the opportunity to purchase LUNA tokens at a 50% discount.
The Luna Foundation has not made an official statement on the subject.
The Luna Foundation continues its efforts to instill confidence in the market. The foundation announced yesterday that it has loaned $1.5 billion worth of Bitcoin and UST to market makers.
Terra co-founder Do Kwon also stated on Twitter that they will announce their plan to rescue the UST
