The Plan of the LUNA (LFG)When it comes to the LFG plan to lend otc trading platforms $760 million to trade the bitcoin market, details have yet to be released. ALSO READ GMT Investments Review: Trading Tools You Need to Make Profit Easier. AIGMarkets Review: Is AIGMarkets a Scam or Secured? LocalTrade Expert Review – Is LocalTrade Scam or Legit? Then, once the market has reached a state of equilibrium, LFG will approach Terraform labs for a loan of 750 million UST in order to equalize its reserves. The LFG made the observation that this decision was made after the council’s meeting had concluded. It went over the following:
Do Kwon, CEO of Terraform Labs, provided an additional explanation of the move that was made by the LFG. To be clear, Known did not intend to sell LFG’s Bitcoin holdings. It is simply “using” the coins for a specific amount of time in order to boost the value of the UST for this short period of time, as the LFG will most likely increase its Bitcoin holdings over the long run.
2/ Relative to Terra, $UST has experienced notable directional flow over the weekend, accompanied by similar volatility in both $LUNA and $BTC. While this flow has currently evened out, it is prudent to prepare for potential future volatility.— LFG | Luna Foundation Guard (@LFG_org) May 9, 2022
Because of the lack of a specific market bias for UST transactions, we believe it is necessary for us to have funds readily available to be deployed in the market. The loan will be repaid in bitcoin after the market has stabilized, which will bring the value of our bitcoin reserves up.
1/ The LFG Council just voted to deploy 1.5B in capital (0.75B in BTC, 0.75B in UST) to allay market concerns around UST. Some more context on why and how: https://t.co/TfaAPkzgUJ— Do Kwon 🌕 (@stablekwon) May 9, 2022