LFG to deploy $1.5 billion to bolster UST peg and build BTC reserves

LFG to deploy $1.5 billion to bolster UST peg and build BTC reserves


Amid the sharp pullback across Bitcoin (BTC) and the wider crypto market this week, the Luna Foundation Guard (LFG) is set to deploy $1.5 billion worth of capital to “help protect” Terra USD’s peg to the U.S. dollar.

The Singapore-based nonprofit LFG is part of the Terra (LUNA) ecosystem and is tasked with collateralizing the network’s algorithmic stablecoin UST to keep its USD peg intact, while also managing the network’s reserves.

While details are sparse at this stage, the LFG outlined on Twitter earlier today that it will first loan out $750 million worth of BTC to over-the-counter (OTC) trading firms to manage and trade the capital.

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Following on from this, once the market has stabilized, the LFG will obtain a 750 million UST loan

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