LFG announced plans to compensate the remaining users of stablecoin terraUSD (UST)
The $40 Bn Terra ecosystem collapsed last week when the UST stablecoin dropped below 20 cents
Currently, the LFG’s remaining reserves consist of 313 BTC, 39,914 Binance Coin, 1,973,554 Avalanche, 1,847,079,725 UST
The Luna Foundation Guard (LFG), the non-profit organisation that supports the Terra ecosystem, in a series of tweets announced on Monday its plans to compensate the remaining users of stablecoin terraUSD (UST), starting with the smallest holders.
“The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first,” the company said.
It also highlighted how it sold cryptos worth millions of dollars to prevent the decline in UST.
Last week, the $40 Bn Terra ecosystem collapsed when the UST stablecoin dropped below 20 cents. The statement by LFG comes at a time when there are criticisms about the lack of transparency of Terra’s reserve funds.
“Consistent with its non-profit mission & focus on the health of the Terra ecosystem, beginning on May 8, when the price of $UST began to drop substantially below one dollar, the Foundation began converting this reserve to $UST,” the statement on Twitter read.
The Foundation directly executed on-chain swaps and transferred bitcoins (BTC) to a counterparty to enable them to enter trades with the Foundation in large size & on short notice.
According to its statement, LFG transferred 52,189 BTC “to trade with a counterparty” on May 8, as the UST price started to slump.
The LFG’s remaining reserves currently consist of 313 BTC, 39,914 Binance Coin, 1,973,554 Avalanche, 1,847,079,725 UST, and 222,713,007 LUNA (of which 221,021,746 is currently staked with validators). It had over 80,000 BTC in reserves as of May 7.
Following the crash of Luna, Indian exchanges delisted the token from their platforms. Indian cryptocurrency exchanges, including WazirX, CoinSwitch Kuber and CoinDCX, have delisted the sister token of stablecoin TerraUSD from their platforms.
Ashish Singhal, CEO and cofounder of CoinSwitch Kuber, said on Twitter a few days back, “The last few days have been tough for all of us. The meltdown of the Terra ecosystem and Luna have been rapid and devastating. After careful deliberation, we have decided to delist Luna from CoinSwitchKuber.”
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