Luna Foundation Guard Depletes $3B Reserve Fund to Rescue the UST

Non-profit organization Luna Foundation Guard (LFG) has just unveiled some information about the status of its reserve fund after trying to save the algorithmic stablecoin TerraUSD (UST).

In early May, the LFG bought $1.5 billion in Bitcoin and raised its balance to 80,394 BTC. At that time, the fund had funds in several other crypto assets, including Tether (USDT), USD Coin (USDC), Binance Coin (BNB), Avalanche (AVAX), as well as UST and Terra (LUNA).

According to analysts, the total value of the coins in the reserve was almost $3.2 billion.

Last May 8, UST lost its parity with the US dollar coinciding with an outflow of assets from the Anchor protocol due to a decline in the rate of return on deposits to 17.87%.

On May 10, the price of the asset fell below $0.62. The drop continued on May 11, after which LUNA, which is used to issue UST, fell to $0.3.

The LFG team spent about $26.3 million USDT, $23.5 million USDC and 33,206 BTC to support the stablecoin parity, buying back the oversupply of the coin.

Today, LFG reported holding 313 BTC and the above amounts in BNB and AVAX.