{"id":59291,"date":"2022-03-27T16:43:06","date_gmt":"2022-03-27T13:43:06","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=59291"},"modified":"2025-09-04T21:07:19","modified_gmt":"2025-09-04T18:07:19","slug":"luna-foundation-guard-plows-more-than-1-billion-into-bitcoin-to-back-ust","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/luna-foundation-guard-plows-more-than-1-billion-into-bitcoin-to-back-ust\/","title":{"rendered":"Luna Foundation Guard Plows More Than $1 Billion into Bitcoin to Back UST"},"content":{"rendered":"<p>The non-profit Luna Foundation Guard (LFG) invested over $1 billion in Bitcoin to back the stability of the algorithmic stablecoin Terra USD (UST). This was reported by Morgan Creek Digital co-founder Anthony Pompliano.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Terra has officially bought $1 billion of bitcoin to back their UST stablecoin with the bitcoin standard.<\/p>\n<p>They will continue buying billions more in the coming months.<\/p>\n<p>\u2014 Pomp \ud83c\udf2a (@APompliano) <a href=\\\"https:\/\/twitter.com\/APompliano\/status\/1507728156094091264?ref_src=twsrc%5Etfw\\\">March 26, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Colin Wu reported that the address, allegedly linked to LFG, has received over 24,955 BTC worth more than $1.1 billion. Blockchain explorer data indicates the wallet began actively purchasing the cryptocurrency on March 27.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">The Bitcoin address (bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q) has deposited nearly 24,955 BTC worth more than $1.1 billion. Market suspects it is the address of Luna Foundation, which has raised $2.2 billion for its bitcoin reserves. <a href=\\\"https:\/\/t.co\/ex7yM1CWx0\\\">https:\/\/t.co\/ex7yM1CWx0<\/a><\/p>\n<p>\u2014 Wu Blockchain (@WuBlockchain) <a href=\\\"https:\/\/twitter.com\/WuBlockchain\/status\/1507934281351720963?ref_src=twsrc%5Etfw\\\">March 27, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>On March 15, LFG said it would burn 4 million LUNA with the aim of issuing $372 million in UST <a href=\"https:\/\/u1f987.com\/en\/news\/lfg-to-burn-4-million-luna-to-mint-roughly-372-million-in-ust-for-external-collateral\">for the subsequent purchase of &#8216;external collateral&#8217;<\/a>.<\/p>\n<p>On March 19, Terraform Labs founder Do Kwon said in a <a href=\\\"https:\/\/twitter.com\/i\/spaces\/1gqGvlqpQdBxB?s=20\\\">Twitter Space<\/a> that the team is working on implementing a new tokenized form of Bitcoin on the Terra blockchain. <\/p>\n<p>According to him, once the work is completed, UST will become a &#8216;hybrid&#8217; stablecoin, allowing direct BTC purchases with a 1% premium. He stressed that Terraform Labs chose Bitcoin because &#8216;its reliability is hard to doubt&#8217;.<\/p>\n<p>Earlier, Kwon said that UST, backed by a reserve of $10 billion in BTC, &#8216;will open a new monetary era&#8217;. He noted that the ecosystem already has $3 billion ready to devote to the initiative, though the technical infrastructure for implementing the project is not yet ready.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">It&#8217;s not 10B today \u2014 as UST money supply grows a portion of the seigniorage will go to build BTC reserves bridged to the Terra chain<\/p>\n<p>We have 3B funds ready to seed this reserve, but technical infrastructure (bridges etc) is still not ready yet.<\/p>\n<p>\u2014 Do Kwon \ud83c\udf15 (@stablekwon) <a href=\\\"https:\/\/twitter.com\/stablekwon\/status\/1506278298883706882?ref_src=twsrc%5Etfw\\\">March 22, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>On March 23, Jump Crypto, which previously led <a href=\"https:\/\/u1f987.com\/en\/news\/luna-foundation-guard-raises-1-billion-to-bolster-ust-stability\">LFG&#8217;s $1 billion LUNA token sale<\/a>, brought to the community a proposal to create a reserve Bitcoin fund to back the UST peg to the US dollar.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">A new proposal from <a href=\\\"https:\/\/twitter.com\/jump_?ref_src=twsrc%5Etfw\\\">@jump_<\/a> is now posted on Agora outlining how the <a href=\\\"https:\/\/twitter.com\/LFG_org?ref_src=twsrc%5Etfw\\\">@LFG_org<\/a> may deploy its <a href=\\\"https:\/\/twitter.com\/search?q=%24BTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$BTC<\/a> reserve on-chain in a reserve model exogenous to the Terra protocol mechanics \u2014 defending the <a href=\\\"https:\/\/twitter.com\/search?q=%24UST&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$UST<\/a> peg amid volatile, downward pressure. <\/p>\n<p>Check it out:<a href=\\\"https:\/\/t.co\/HfWVVDUg14\\\">https:\/\/t.co\/HfWVVDUg14<\/a><\/p>\n<p>\u2014 Terra (UST) \ud83c\udf0d Powered by LUNA \ud83c\udf15 (@terra_money) <a href=\\\"https:\/\/twitter.com\/terra_money\/status\/1506736478449127425?ref_src=twsrc%5Etfw\\\">March 23, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>The proposed Jump Crypto model envisions the fund being able to provide the liquidity needed to sustain a stable UST price in BTC on an operational basis:<\/p>\n<ul class=\\\"wp-block-list\\\">\n<li>When the price of the stablecoin falls below $1, LFG would place the accumulated assets into the BTC\/UST pool, which trading platforms can access at a small discount. For example, offering 1 UST in exchange for $0.98 in BTC;<\/li>\n<li>When the situation stabilises, external traders can purchase UST with BTC.<\/li>\n<\/ul>\n<figure class=\\\"wp-block-image size-full\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"735\\\" height=\\\"427\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/pool-1.png\\\" alt=\\\"Luna Foundation Guard Plows More Than $1 Billion into Bitcoin to Back UST\\\" class=\\\"wp-image-168655\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/pool-1.png 735w, https:\/\/u1f987.com\/wp-content\/uploads\/pool-1-300x174.png 300w\\\" sizes=\\\"auto, (max-width: 735px) 100vw, 735px\\\" \/><figcaption>The model of the reserve pool. Data: Agora.<br \/><\/figcaption><\/figure>\n<p>The reserve pool operates similarly to the network-internal mechanism for issuing UST. However, instead of burning LUNA, the plan involves supplying and holding &#8216;wrapped&#8217; BTC. The latter can be added to the Terra ecosystem through cross-chain protocols such as Wormhole.<\/p>\n<p>Jump Crypto noted that launching the model requires assembling a reserve fund of $2.5 billion in BTC. The company also stressed that for the mechanism to work, it is &#8216;critically important&#8217; to have reliable private UST markets.<\/p>\n<p>Such markets could be decentralized platforms. For example, after integrating Luna with the cross-chain protocol THORChain, a UST\/BTC liquidity pool appeared on THORSwap.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Decentralized stablecoin (UST) now trades with <a href=\\\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\\\">#Bitcoin<\/a> natively. <\/p>\n<p>The revolution will not be centralized. <a href=\\\"https:\/\/twitter.com\/THORChain?ref_src=twsrc%5Etfw\\\">@THORChain<\/a> <a href=\\\"https:\/\/twitter.com\/terra_money?ref_src=twsrc%5Etfw\\\">@terra_money<\/a> <a href=\\\"https:\/\/t.co\/yJLxNfXIme\\\">https:\/\/t.co\/yJLxNfXIme<\/a><\/p>\n<p>\u2014 Erik Voorhees (@ErikVoorhees) <a href=\\\"https:\/\/twitter.com\/ErikVoorhees\/status\/1507500232560369664?ref_src=twsrc%5Etfw\\\">March 25, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script> <\/p>\n<p>Earlier in March, <a href=\"https:\/\/u1f987.com\/en\/news\/terraform-labs-ceo-bets-11-million-on-lunas-rise\">Do Kwon put $11 million into the growth of LUNA<\/a>. If by 14 March 2023 the asset trades below $88, the head of Terraform Labs will lose his money. <\/p>\n<p>Read ForkLog&#8217;s Bitcoin news on our <a href=\\\"\/\/telegram.me\/forklog\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 crypto news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The non-profit Luna Foundation Guard (LFG) invested more than $1 billion in Bitcoin to back the stability of the algorithmic stablecoin Terra USD (UST), according to Morgan Creek Digital co-founder Anthony Pompliano.<\/p>\n","protected":false},"author":1,"featured_media":59292,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[807,852],"class_list":["post-59291","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-stablecoins","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"27","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/59291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=59291"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/59291\/revisions"}],"predecessor-version":[{"id":59293,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/59291\/revisions\/59293"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/59292"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=59291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=59291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=59291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}