Luna Foundation Guard will lend $1.5 billion in BTC and UST to keep the UST stablecoin stable.
Terra foundation Luna Foundation Guard (LFG) made a statement Monday amid the fud talk about the UST. In the aforementioned statement, he said that Terra will lend hundreds of millions of dollars worth of Bitcoin and UST to keep its stablecoin UST stable. In a tweet thread shared by LFG, LFG stated that it will actively defend the stability of the UST and the Terra ecosystem in the face of the uncertainty of macro conditions, adding:
“Traders are looking forward to helping the market achieve both #1 and #2. they will swap capital on both sides and eventually maintain parity of the LFG Reserve pool (in BTC) as market conditions gradually stabilize.”
As it is known, Terra’s algorithmic stablecoin UST’s stability was broken over the weekend and fell below 1 dollar. UST, which slumped as low as $0.98 amid market volatility, then reversed its losses and is trading at $0.995 at the time of publication.
