After UST de-pegged on May 9th, triggering a waterfall result of billions of LUNA minted, the Luna Foundation Guard divulged what occurred specifically to their reserves which were suggested to support UST, keeping it pegged to USD. Let’s take a look at LUNA and UST and any associated news today.
Luna Foundation Sells Over $3 Billion to Save UST
According to a series of tweets released today, the Luna Foundation Guard described their efforts to safeguard the peg.
1/ As of Saturday, May 7, 2022, the Luna Foundation Guard held a reserve including the following possessions:
· 80,394$ BTC
· 39,914$ BNB
· 26,281,671$ USDT
· 23,555,590$ USDC
· 1,973,554$ AVAX
· 697,344$ UST
· 1,691,261$ LUNA
— LFG|Luna Foundation Guard (@LFG_org) May 16, 2022
LFG has a considerable quantity of reserves in the kind of BTC, BNB, USDT, USDC, and AVAX. That implies on May 7th, LFG had approximately $5 billion in funds to assist safeguard UST’s $1 peg.
Throughout the previous week, LFG offered billions worth of their reserves to try and support the peg, which sadly has stopped working.
After tiring the majority of its funds, LFG’s present reserves are somewhat listed below $300 million. The structure is looking to make use of the rest of its funds to compensate the staying UST users, the tiniest holders.
Another Terra Ecosystem Revival Plan
Meanwhile, users on Terra’s main online forums are developing numerous other revival prepare for the Terra community, among the most supported ones presently called The Sanest Compromise.
A user-called lawyer lays out a strategy where Terra either changes to a brand-new chain or burns all the tokens other than for 1 billion.
The 1 billion brand-new tokens would be designated as follows:
- 20% to designers
- 40% to LUNA holders at the time of debugging
- 10% to LUNA holders at the end of the old chain
- 30% to the rescue investors or angel financiers.
The new beginning would permit financiers to support the job and compensate old holders for the LUNA and UST failure.
According to the strategy, a $3.5-5 billion appraisal might be accomplished presuming the revival strategy works.
LUNA and UST Price Continues to Drop
After this early morning’s news, the UST rate struck a brand-new lowest level of $0.10, while LUNA continues its downward spiral, presently trading at $0.0001644
LUNA’s general market capitalization is still at $1 billion, however, might strike the millions in the next couple of hours if the bearish pattern continues.
Today’s statement is anything but favorable. The fairly low quantity of reserves presently held by the Luna Foundation Guard contributes to the unpredictability and worry of financiers either wanting to purchase the dip for LUNA or those holding their LUNA/UST in the hopes of a healing.
The excellent news is that there is development today with the neighborhood developing several propositions and the Luna Foundation Guard divulging their reserves.