What did Luna Foundation Guard’s $1bn sale mean for terraust?

On Wednesday, news hit the wires of Luna Foundation Guard (LFG) raising $1bn in a private token sale. The $1bn LUNA token sale was reportedly the largest in history. Importantly the LFG created a Bitcoin (BTC) denominated reserve for Terra’s largest stablecoin, TerraUST (UST).

What is the Luna Foundation guard (LFG)?

And today, the Luna Foundation Guard (LFG), a non-profit supporting all things Terra(LUNA), has voted to lend $1.5 billion in crypto to protect its native stablecoin. The organization’s council votedto lend out $750 millionin Bitcoinfrom its reservesand $750 million in TerraUSD (UST) to keep the latter asset pegged to $1.

Why is the Luna Foundation guard lending $1.5 billion in crypto?

Drastic times call for drastic measures. And today, the Luna Foundation Guard (LFG), a non-profit supporting all things Terra(LUNA), has voted to lend $1.5 billion in crypto to protect its native stablecoin.