Luna Foundation Guard Spent $2.8 Billion To Defend The UST Peg
A technical audit was conducted by JS Held to provide full transparency into the trading, blockchain records, and efforts of The Luna Foundation Guard (LFG) and Terraform Labs (TFL) to defend the price of TerraUSD (UST) between May 8th and May 12th, 2022.
According to the audit report, which can be viewed in its entirety here, Luna Foundation Guard spent $2.8 billion (80,081 BTC and 49.8M in stablecoins) to defend UST‘s peg, which is consistent with LFG’s tweets on May 16th, 2022.
TFL also went above and beyond, spending $613 million of its own money to defend the UST peg.
According to the report, all LFG funds were spent to defend UST’s declared peg parity with the Dollar, and LFG’s remaining balances are the only funds remaining.
Naturally, this disproves the following claims:
- Embezzlement or misappropriation of funds: all funds were used for peg defense.
- LFG funds used to benefit insiders all peg defense occurred in open markets, with no preference for any party all LFG funds are kept in self-hosted wallets, have not moved since the May 16th tweet, and have not been frozen
In addition to TFL using $0.6 billion of its proprietary capital for peg defense, it is worth noting that Luna Foundation Guard was entirely funded by TFL donations to build exogenous reserves for Terra stablecoins.
While those reserves were unfortunately insufficient to defend against extreme market volatility, resulting in UST depegging, Luna Foundation Guard fully fulfilled its mandate by doing everything in its power to prevent that outcome.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Chubbi
CoinCu News
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Luna Foundation Guard Spent $2.8 Billion To Defend The UST Peg
A technical audit was conducted by JS Held to provide full transparency into the trading, blockchain records, and efforts of The Luna Foundation Guard (LFG) and Terraform Labs (TFL) to defend the price of TerraUSD (UST) between May 8th and May 12th, 2022.
According to the audit report, which can be viewed in its entirety here, Luna Foundation Guard spent $2.8 billion (80,081 BTC and 49.8M in stablecoins) to defend UST‘s peg, which is consistent with LFG’s tweets on May 16th, 2022.
TFL also went above and beyond, spending $613 million of its own money to defend the UST peg.
According to the report, all LFG funds were spent to defend UST’s declared peg parity with the Dollar, and LFG’s remaining balances are the only funds remaining.
Naturally, this disproves the following claims:
- Embezzlement or misappropriation of funds: all funds were used for peg defense.
- LFG funds used to benefit insiders all peg defense occurred in open markets, with no preference for any party all LFG funds are kept in self-hosted wallets, have not moved since the May 16th tweet, and have not been frozen
In addition to TFL using $0.6 billion of its proprietary capital for peg defense, it is worth noting that Luna Foundation Guard was entirely funded by TFL donations to build exogenous reserves for Terra stablecoins.
While those reserves were unfortunately insufficient to defend against extreme market volatility, resulting in UST depegging, Luna Foundation Guard fully fulfilled its mandate by doing everything in its power to prevent that outcome.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Chubbi
CoinCu News
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