{"id":571193,"date":"2022-05-16T11:42:32","date_gmt":"2022-05-16T10:42:32","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=571193"},"modified":"2022-05-16T13:55:20","modified_gmt":"2022-05-16T12:55:20","slug":"luna-foundation-guard-declares-remaining-reserves-and-suggests-compensation-plan-for-ust-holders","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/luna-foundation-guard-declares-remaining-reserves-and-suggests-compensation-plan-for-ust-holders\/","title":{"rendered":"Luna Foundation Guard Declares Remaining Reserves and Suggests Compensation Plan For UST Holders"},"content":{"rendered":"\n<p>The <a href=\"https:\/\/dashboard.lfg.org\/\" rel=\"nofollow noopener\">Luna Foundation Guard<\/a>, a non-profit organization that exists to support growth in the Terra ecosystem, has provided an update on its massive reserves. The update comes amid questions from the crypto community following the crash in LUNA and UST prices.<\/p>\n\n\n\n<p>LFG\u2019s report also includes intentions to offer a cushion for UST holders after the algorithmic stablecoin lost its $1 peg and fell below 20 cents.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first. We are still debating through various distribution methods, updates to follow soon.<\/p><\/blockquote>\n\n\n\n<h2>LFG Spent Its BTC Reserve Defending UST Amid LUNA Price Fall<\/h2>\n\n\n\n<p>The report suggests that the LFG deployed massive amounts from its reserves in a bid to defend UST\u2019s peg after the stablecoin showed signs of a crash on May 8, 2022. Efforts from the foundation included selling around 80,000 BTC as well as millions in USDT and USDC.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">1\/ As of Saturday, May 7, 2022, the Luna Foundation Guard held a reserve consisting of the following assets:<br>\u00b7 80,394 <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$BTC<\/a><br>\u00b7 39,914 <a href=\"https:\/\/twitter.com\/search?q=%24BNB&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$BNB<\/a><br>\u00b7 26,281,671 <a href=\"https:\/\/twitter.com\/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$USDT<\/a><br>\u00b7 23,555,590 <a href=\"https:\/\/twitter.com\/search?q=%24USDC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$USDC<\/a><br>\u00b7 1,973,554 <a href=\"https:\/\/twitter.com\/search?q=%24AVAX&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$AVAX<\/a><br>\u00b7 697,344 <a href=\"https:\/\/twitter.com\/search?q=%24UST&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$UST<\/a><br>\u00b7 1,691,261 <a href=\"https:\/\/twitter.com\/search?q=%24LUNA&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$LUNA<\/a><\/p>&mdash; LFG | Luna Foundation Guard (@LFG_org) <a href=\"https:\/\/twitter.com\/LFG_org\/status\/1526126703046582272?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">May 16, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>However, LUNA and UST prices continued to crash all week. As of May 16, the LFG claims to hold less than 400 BTC.<\/p>\n\n\n\n<p>Notably, the report declares that the foundation attempted to defend the peg through on-chain swap and BTC reserves transferred to a counterparty. Members of the community have asked for more clarity regarding the identity of the mentioned counterparty.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">8\/ As of now, the Foundation\u2019s remaining reserves consist of the following assets:<br>\u00b7 313 <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$BTC<\/a><br>\u00b7 39,914 <a href=\"https:\/\/twitter.com\/search?q=%24BNB&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$BNB<\/a><br>\u00b7 1,973,554 <a href=\"https:\/\/twitter.com\/search?q=%24AVAX&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$AVAX<\/a><br>\u00b7 1,847,079,725 <a href=\"https:\/\/twitter.com\/search?q=%24UST&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$UST<\/a><br>\u00b7 222,713,007 <a href=\"https:\/\/twitter.com\/search?q=%24LUNA&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$LUNA<\/a> (of which 221,021,746 is currently staked with validators)<\/p>&mdash; LFG | Luna Foundation Guard (@LFG_org) <a href=\"https:\/\/twitter.com\/LFG_org\/status\/1526126716388749313?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">May 16, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Also, users have asked the <a href=\"https:\/\/en.ethereumworldnews.com\/luna-foundation-guard-breaks-silence\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/luna-foundation-guard-breaks-silence\/\" rel=\"noreferrer noopener\">LFG<\/a> to back up their claims with relevant transaction hash (TX).<\/p>\n\n\n\n<p>Following the LUNA\u2019s price crash and UST\u2019s tumble from its $1 peg, a plethora of suggestions have flooded the Terra space on how to move forward and possibly salvage the protocol.&nbsp;<\/p>\n\n\n\n<p>Although no word has emerged from Terra CEO Do Kwon as of press time, crypto proponents and notable figures like <a href=\"https:\/\/en.ethereumworldnews.com\/binance-ceo-does-not-think-forking-terra-is-the-solution-to-luna-and-usts-woes\/\">Binance CEO Changpeng Zhao<\/a> and Ethereum Founder Vitalik Buterin have opined that a compensation strategy for UST holders is indeed the way to start a recovery.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Strongly support this. Coordinated sympathy and relief for the average UST smallholder who got told something dumb about &quot;20% interest rates on the US dollar&quot; by an influencer, personal responsibility and SFYL for the wealthy. <a href=\"https:\/\/t.co\/YfNlpvAizg\" rel=\"nofollow\">https:\/\/t.co\/YfNlpvAizg<\/a><\/p>&mdash; vitalik.eth (@VitalikButerin) <a href=\"https:\/\/twitter.com\/VitalikButerin\/status\/1525561624974700545?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">May 14, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The Luna Foundation Guard, a non-profit organization that exists to support growth in the Terra ecosystem, has provided an update on its massive reserves. The update comes amid questions from the crypto community following the crash in LUNA and UST prices. LFG\u2019s report also includes intentions to offer a cushion for UST holders after the algorithmic stablecoin lost its $1 peg and fell below 20 cents.&nbsp; The Foundation is looking to use its remaining assets to compensate remaining users of [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":571194,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2,108366],"tags":[108421,108514,108364,108511],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/571193"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=571193"}],"version-history":[{"count":2,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/571193\/revisions"}],"predecessor-version":[{"id":571218,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/571193\/revisions\/571218"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/571194"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=571193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=571193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=571193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}