{"id":61535,"date":"2022-05-16T16:40:26","date_gmt":"2022-05-16T13:40:26","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=61535"},"modified":"2025-09-05T12:45:52","modified_gmt":"2025-09-05T09:45:52","slug":"luna-foundation-guard-drains-3bn-from-reserve-to-rescue-ust","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/luna-foundation-guard-drains-3bn-from-reserve-to-rescue-ust\/","title":{"rendered":"Luna Foundation Guard drains $3bn from reserve to rescue UST"},"content":{"rendered":"<p>The non-profit Luna Foundation Guard (LFG) disclosed information about the state of its reserve fund after attempts to rescue the algorithmic stablecoin TerraUSD (UST).<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">8\/ As of now, the Foundation\u2019s remaining reserves consist of the following assets:<br \/>\u00b7 313 <a href=\"https:\/\/twitter.com\/search?q=%24BTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$BTC<\/a><br \/>\u00b7 39,914 <a href=\"https:\/\/twitter.com\/search?q=%24BNB&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$BNB<\/a><br \/>\u00b7 1,973,554 <a href=\"https:\/\/twitter.com\/search?q=%24AVAX&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$AVAX<\/a><br \/>\u00b7 1,847,079,725 <a href=\"https:\/\/twitter.com\/search?q=%24UST&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$UST<\/a><br \/>\u00b7 222,713,007 <a href=\"https:\/\/twitter.com\/search?q=%24LUNA&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$LUNA<\/a> (of which 221,021,746 is currently staked with validators)<\/p>\n<p>\u2014 LFG | Luna Foundation Guard (@LFG_org) <a href=\"https:\/\/twitter.com\/LFG_org\/status\/1526126716388749313?ref_src=twsrc%5Etfw\">May 16, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div>\n<\/figure>\n<p>In early May, LFG additionally purchased bitcoins worth about ~$1.5 billion and increased its balance in the primary cryptocurrency to 80,394 BTC. As of May 7, the foundation held assets in several other crypto assets, including Tether (USDT), USD Coin (USDC), Binance Coin (BNB), Avalanche (AVAX), as well as UST and the Terra token (LUNA).<\/p>\n<p>Analysts at The Block Research calculated that the total value of coins in the reserve fund was almost $3.2 billion.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">In summary, LFG has gone from having $3.1 billion in their reserves a week ago to now having roughly $87M. Which means they spent roughly $3 billion defending the UST peg and UST still collapsed. <a href=\"https:\/\/t.co\/A9UBKnMJDH\">https:\/\/t.co\/A9UBKnMJDH<\/a> <a href=\"https:\/\/t.co\/bbF1wd2U5A\">pic.twitter.com\/bbF1wd2U5A<\/a><\/p>\n<p>\u2014 Larry Cermak (@lawmaster) <a href=\"https:\/\/twitter.com\/lawmaster\/status\/1526132520231874565?ref_src=twsrc%5Etfw\">May 16, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div>\n<\/figure>\n<p>On May 8, UST lost its peg to the US dollar. This occurred amid outflows from Anchor Protocol due to the deposit yield dropping to 17.87%.<\/p>\n<p>On May 10, the asset\u2019s quotes dropped below $0.62. The decline continued on May 11, after which the Terra token used to mint UST, LUNA, collapsed to $0.3.<\/p>\n<p>The LFG team spent around $26.3 million in USDT, around $23.5 million in USDC and 33,206 BTC to repurchase excess supply of the coin. A further 47,188 BTC moved within the organization was not disclosed.<\/p>\n<p>As of May 17, LFG reported holdings of 313 BTC and the previous amounts in BNB and AVAX. The volumes of the organization\u2019s devalued UST and LUNA holdings rose significantly. According to The Block Research, the value of the reserves fell to about $268.3 million, and excluding project tokens it stood at about $87 million.<\/p>\n<p>Following LFG\u2019s publication on the fund\u2019s status, the price of the stablecoin collapsed from around $0.14 to near $0.09.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/QyTPgurqIDGKNQLOoKbRGidzukolpIoiBDlQWiXfwEZHAXepxchUb320hHUZTNzztGLzmvWnx0IGWxEk_jE53hFBxopHfTgrABZco5OMPeHBODNNW7G6wkI_WELVDxjgtOlZaO38AWh12L-cOQ\" alt=\"Luna Foundation Guard drains the reserve fund by $3 billion to rescue UST\"\/><figcaption>Hourly chart of UST\/USD on Coinbase. Data: TradingView.<\/figcaption><\/figure>\n<p>LUNA prices fell below $0.0002 (CoinGecko).<\/p>\n<p>The LFG said it hoped to use the remaining assets to compensate UST users, primarily small holders.<\/p>\n<p>Earlier, Vitalik Buterin <a href=\"https:\/\/u1f987.com\/en\/news\/vitalik-buterin-urges-terra-to-prioritise-compensation-for-small-investors\">urged the project<\/a> to focus on compensating losses for small investors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The non-profit Luna Foundation Guard (LFG) disclosed information about the state of its reserve fund after attempts to rescue the algorithmic stablecoin TerraUSD (UST).<\/p>\n","protected":false},"author":1,"featured_media":61536,"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":[852],"class_list":["post-61535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"22","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61535","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=61535"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61535\/revisions"}],"predecessor-version":[{"id":61537,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61535\/revisions\/61537"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/61536"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=61535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=61535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=61535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}