LFG loans BTC worth $750M to OTC trading firm to protect UST peg

05/09 04:35

Luna Foundation Guard tweeted: "Over the past several days, market volatility across crypto assets has been significant. The market turmoil is also reflected by the past week's uncertain macro conditions across legacy asset classes. Relative to Terra, UST has experienced notable directional flow over the weekend, accompanied by similar volatility in both LUNA and BTC. While this flow has currently evened out, it is prudent to prepare for potential future volatility. Per the LFG’s mandate, the LFG will proactively defend the stability of the UST peg and broader Terra economy, especially under volatility and the uncertainty of macro conditions in legacy markets. As a result, the LFG Council has voted to execute the following: 1. Loan $750M worth of BTC to OTC trading firms to help protect the UST peg. 2. Loan 750M UST to accumulate BTC as market conditions normalize. The traders will trade the capital on both sides of the market to help accomplish both #1 and #2, eventually maintaining parity of the LFG Reserve pool (denominated in BTC) as market conditions progressively stabilize. Transfers from the public LFG wallets will be reflected in the LFG Reserve dashboard shortly."
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