Foundation guard terra btcdenominated terra ustweeks

foundation guard terra btcdenominated terra ustweeks

To get to that point, the stablecoin may set aside a portion of the revenue generated from issuing UST to accumulate more BTC.

He added that the LFG hoped its on-chain BTC reserve system would be live “by the time the Terra economy would contract, thereby obviating the need for LFG discretionary intervention.” Per his words, the move will be an “important opportunity for the terra and wider crypto community to gather empirical data on how LFG operates & fits into the Terra ecosystem.

Do Kwon’s thread comes shortly after the value of the UST dropped below its $1 peg, seemingly after a series of major withdrawals on Curve and the Anchor Protocol, a lending market that offers high yields to users who deposit UST.

Some of the other recent developments, particularly across DeFi and the recent $1 billion raise by Luna Guard Foundation, are just adding to Terra’s multitude of resources the ecosystem delivers to the world of digital assets,” Michael Prevoznik, Chief Financial Officer of BTCS, said.

Technical Work Completed to Run aTerraValidator Node

BTCS has completed the technical work to run a Terra validator node and included it in its planned Staking-as-a-Service platform. The process of blockchain validation includes special intellectual property (IP), technical know-how, and regular maintenance to ensure efficiency. BTCS has staked 3,600 LUNA, in turn, BTCS is generating compounding rewards.

The statement is just an attempt at visibility for the Terra community, which has been battered by the recent crash. In response to being asked what the balance reserves actually entailed, Tetot said that more information will be provided soon and that the announcement was just for better transparency.

As of May 7, the LFG had a reserve consisting of various assets, including over 80,000 BTC and 23.5 million USDC. It has several other assets, but these two make up the bulk of the reserve.

1/ As of Saturday, May 7, 2022, the Luna Foundation Guard held a reserve consisting of the following assets: · 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

The LFG has been working overtime to help correct the Terra ecosystem crash.

  • Investors and analysts continue to cast doubt on the Luna Foundation Guard’s reserves.
  • Market analyst and advisor to the Luna Foundation Guard (LFG) Remi Tetot has offered an update on the treasury’s balances. Tetot tweeted about this on May 16, saying that it was time he broke the silence and informed the community of the steps soon to be taken.

    While I understand how the silence has be frustrating (it has been for me as well), I have decided to break ranks.

    – LFG balance reserves coming, we are waiting for exchange to confirm the timing and tx

    – Amending small wallets, builders and stakers is a priority

    — Remi Tetot 🌑 (@Remi_Tetot) May 16, 2022

    Specifically, Tetot said that the Luna Foundation Guard’s balance reserves are coming and that it is just waiting for the exchange to confirm the timing and transaction.

    Additionally, Luna Foundation Guard has recently raised $1 billion to establish a Bitcoin-denominated Forex Reserve for UST, Terra’s biggest stablecoin.

    Terra’s End-to-End Programmability

    Terra’s end-to-end, programmable payment solution addresses several longstanding issues of fragmented payment systems. Furthermore, Terra’s comprehensive model and technology should help payment providers save hundreds of millions of dollars a year.

    “Terra’s full programmability has allowed it to be a major contender in crypto’s fight to focus on price stabilization.

  • Terra’s Korean community of thousands of traders, which started in 2019 has been officially shut down.
  • Do Kwon and Luna Foundation Council’s efforts to recover Terraform Lab tokens LUNA and UST have failed.
  • Luna Foundation Guard reserves have plummeted to $60.94 million in Avalanche tokens and $10.31 million in UST.
  • The Terra blockchain has been halted several times since May 11 in light of the de-pegging of TerraUSD (UST) and instability in liquidity across exchanges. LUNA crashed to near zero, despite Do Kwon’s recovery plan and massive burn of UST.

    Terra’s LUNA on the path to zero as blockchain halts

    LUNA, the sister token of the controversial stablecoin TerraUSD (UST), crashed to near zero as the Terra blockchain was halted several times since May 11, 2022.

    Both LUNA and UST continue to be at low points, but some changes are taking place that make investors hopeful for a recovery.

    LFG Reserve Being Drained To Rescue Terra

    Before the crash, the LFG had been accumulating bitcoin and avalanche to the tune of billions. The first major move that the LFG executed was the approval of $1.5 billion in bitcoin and UST to maintain UST’s $1 peg. This failed to keep the stablecoin from depegging.

    In the aftermath, attention began turning towards the wallets of the foundation, including what had happened to the bitcoin that remained following that rescue attempt.
    Investors began criticizing the Terra project for lack of transparency.

    That is what has prompted statements like the one Tetot offered. Perhaps there will be more actions and transparency statements as well.

    BTC to maintain UST’s peg to the U.S. dollar.

    2/ First, *LFG is not trying to exit its bitcoin position*.

    The goal is to have this capital in the hands of a professional market maker such that:

    1) Buy UST if price < peg 2) Buy BTC if price = peg

    thus significantly strengthening the liquidity around UST peg

    — Do Kwon 🌕 (@stablekwon) May 9, 2022

    Do Kwon added that while “buys and sells of UST are not meaningfully directional now,” the Luna Foundation Guard felt it was “valuable to have capital ready to be deployed in the current market.” Once the market recovers, he added, the organization plans to “have the loan redeemed to us in BTC, increase the size of our total reserves.”

    The Luna Foundation Guard has been building up a BTC reserve with the goal of accumulating $10 billion in BTC to back the UST stablecoin.

    There have been many headlines in the past few weeks surrounding the choices of Do Kwon, the founder of Terraform Labs, which created the crypto tokens LUNA and stablecoin TerraUSD (UST).

    Kwon previously announced plans to obtain $10 billion in bitcoin for reserves to “open a new monetary era of the Bitcoin standard.” The funds will be used to back UST in a decentralized foreign exchange reserve to keep the value of the stablecoin at a fixed rate.

    On Wednesday, a few hours before speaking to TechCrunch, he casually tweeted that he bought $230 million in bitcoin.

    Kwon told TechCrunch Terra has purchased $1.6 billion in bitcoin so far and plans to purchase an additional $1.4 billion with capital from Luna Foundation Guard. The Terra protocol will buy the remaining $7 billion of bitcoin through users wanting to mint UST.

    Kwon said.

    There is a circulating supply of 16.72 billion UST in the market and the current volume of the stablecoin is $672 million, up 9.2% in the past 24 hours, according to data on CoinMarketCap at the time of publication. UST is the 14th largest cryptocurrency by market capitalization.

    As the Terra ecosystem begins to grow substantially within other L1s like the Avalanche blockchain, for example, then there’s a possibility that UST will be backed by a lot of Avalanche’s token, AVAX, he said.

    “If you’re minting UST on Avalanche, you would trade in AVAX instead of bitcoin and that will in turn improve the size of AVAX reserves,” he said.

    By adding other types of collateral, it will expand the potential user base of Terra stablecoins, he said.

    Users would put bitcoin into the reserve and then get UST,” he explained.

    But what’s more interesting is that these bitcoin purchases are just the beginning of Kwon and Terra’s larger road map to expand and integrate the stablecoin deeper into the crypto ecosystem.

    Kwon plans to back UST with other Layer 1 (L1) blockchains like Solana and Avalanche, to name a few, in the short term.

    “We’re big believers of Bitcoin, so we’re just going to continue to buy whenever there’s an opportunity to,” Kwon said. “Overtime, Terra is going to be backed by a basket of the top Layer 1 assets.”

    He did not clearly note which L1s that would entail, but he said that bitcoin will remain the dominant reserve for UST.

    Several exchanges and platforms like Binance Futures, Bybit, and eToro have delisted LUNA in light of the instability and unstable liquidity.

    Terra’s unofficial Korean community, which first started in 2019 and comprised thousands of investors, has been shut down. The admin’s final words before shutting the community were:

    This is really over… Validators are leaving too… He’s going to sell the house and run

    Do Kwon, the CEO of Terraform Labs, has been inactive on Twitter since May 11, 2022.
    Kwon has disappeared after revealing a detailed step-by-step plan to burn UST at 4x the current rate and reduce its supply to restabilize its peg.

    The Luna Foundation Guard (LFG) council’s recovery of Terraform lab’s LUNA and UST has nearly failed as reserves plummet to $71.26 million, and the two tokens fail to recover.

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