- The Luna Foundation Guard was formed in January of this year.
- UST stablecoins will utilize this $1 billion auction money.
For the second time in a week, the price of Terra’s native cryptocurrency, LUNA, has surpassed the $55 mark. An over-the-counter LUNA sale raised $1 billion for the Luna Foundation Guard (LFG).
Bitcoin-denominated FX Reserve
In addition to Jump Crypto and Three Arrows Capital, additional investors, including GSR, DeFiance Capital, Republic Capital, Tribe Capital, and others, participated in the fundraising effort and contributed to its success. The Luna Foundation Guard was formed in January of this year as a non-profit organization to promote the progress of Terra. UST stablecoins will utilize this $1 billion auction money to build a Bitcoin-denominated FX reserve.
Terra explains the mechanism:
“When the demand for Terra is high and the supply is limited, the price of Terra increases. When the demand for Terra is low and the supply is too large, the price of Terra decreases. The protocol ensures the supply and demand of Terra is always balanced, leading to a stable price.”
Because the LUNA Foundation Guard thinks BTC to be “less correlated to the Terra ecosystem,” they have picked the Bitcoin-denominated Forex Reserve. In the following weeks, LFG will be sharing additional information about UST’s reserve function and design.
In the DeFi ecosystem, Terra’s native stablecoin, UST, is an algorithmic stablecoin. By burning LUNA tokens, users may create new Terra-based UST stablecoins. LUNA may be minted by burning UST. According to CoinMarketCap, the Terra price today is $56.61 USD with a 24-hour trading volume of $2,255,490,109 USD. Terra is up 15.12% in the last 24 hours.
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