Luna Foundation Guard (LFG), Terra’s stablecoin custodian, is looking to raise over $1 billion, according to reports.of The Block LFG will use the cash to help revive the peg against the UST dollar that fell as low as 60 cents amid the broader crypto market turmoil.
Jump, Celsius, Jane Street and (maybe including) Alameda. negotiatingAn agreement that will allow them to purchase LUNA, Terra’s token, at a 50% discount, with the tokens locked for one year. And it’s granted monthly for the second year, according to The Block.
LFG did not comment on this fundraising round. On Tuesday, Terraform Labs founder Do Kwon tweeted that it was “close to announcing plans for a $UST recovery.”
After the UST plunged as low as 60 cents, it sent shockwaves across the decentralized finance (DeFi) industry, even sparking comments from US Treasury Secretary Janet Yellen on the risks of crypto ventures. Currency
As UST fell and LUNA prices fell nearly 50%, LFG used more than $1.5 billion of newly formed bitcoin (BTC) reserves to protect UST’s peg.
Rumor: Luna Foundation Guard May Prepare $1 Billion Funding To help revive the UST’s Peg against the dollar appeared first on Bitcoin Addict.