Demand for UST Keeps Rising, Luna Foundation Guard to Burn 4.2 Million LUNA From Treasury – Bitcoin News

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The Luna Foundation Guard (LFG), a non-profit organization, has announced new measures to keep the supply of UST, the mainstay of the Terra ecosystem, liquid in secondary markets. The protocol has already reached the maximum emission of UST per day, but demand is strong enough that the foundation will have to burn more LUNA to guarantee the supply of UST in these markets.

Lunar Foundation Guard Burn 4.2 Million LUNA for UST

The Luna Foundation Guard, an organization dedicated to supporting projects in the Terra ecosystem, has decided to take action to increase UST’s supply in secondary markets. The most common way to get UST, the stable currency with a dollar from the Terra ecosystem, is to burn LUNA in the protocol vault. However, due to the increased demand for UST, the maximum amount of stalcoin is issued daily, leaving many investors without access to the currency.

These investors then have to go to secondary markets like exchanges and decentralized financial applications to satisfy demand. As such, the Lunar Foundation Guard council voted in favor of burning 4.2 million LUNA to UST and selling it to markets like Curve, whose stability pools have lost balance due to high demand.


Still Attraction

This is the second time the organization has decided to step in to restore balance in Curve pools this month. Recently, the foundation decided to do the same, announcing that they had decided to burn 5 million LUNA to issue UST, which was used to fix these imbalances.

The proceeds of that operation were used to buy bitcoin for the treasury, and the Luna Foundation Guard also decided to use funds from the latter operation to buy more bitcoin for the forex reserve used to support the UST price in times of market tension.

Much of Terra’s attraction to investors seems to be Anchor, a protocol that lets its users earn interest of nearly 20% on the UST deposited. At the time of writing, Anchor had amassed nearly US $ 10 million in deposits. LUNA, the stabilizing partner of the Terra protocol, also benefited from this action. LUNA is now sitting at nearly $ 100, up more than 50% in value over the past 30 days, according to Coingecko data.

What do you think of the LFG’s moves to balance UST’s secondary markets? Tell us in the comments section below.

sergio@bitcoin.com '

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price hike occurred in December 2017. Having a computer engineering background, living in Venezuela, and being affected by the cryptocurrency boom on a social level, he offers a different point of view. on crypto success and how it helps the unbanked and underserved.

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