- The Luna Foundation Guard announced on May 9 that it will lend out hundreds of millions of dollars in Bitcoin to defend UST peg.
- UST, Terra’s stablecoin, slipped below its intended $1 parity and plummeted to $0.990 in the last 24-hour period.
Terra’s LUNA is on a downward trajectory, analysts predict a drop to $45 within the next four weeks.
The Luna Foundation Guard (LFG) announced that it will defend stablecoin’s UST peg amig rising market volatility. The algorithmic stablecoin recently dropped below its $1 parity, and LFG is working on proactively defending the stability of the UST peg.
Terra price plummets amidst instability in UST peg
Do Kwon, the founder and CEO of Terraform labs, revealed the Luna Foundation Guard’s vote to deploy $1.5 billion in capital to allay concerns regarding the stability of UST peg. $750 million in Bitcoin and $750 million in Terra’s algorithmic stablecoin UST will be deployed to defend the latter’s peg, as market volatility rises.
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: https://t.co/TfaAPkzgUJ
— Do Kwon (@stablekwon) May 9, 2022