Last weekend, as Terra’s UST stablecoin showed the first warning signs of instability, slipping from its dollar peg to $0.985, Luna Foundation Guard (LFG), the nonprofit responsible for overseeing the health of Terra’s ecosystem, voted to deploy $1.5 billion in Bitcoin and UST from reserves to repeg UST to the U.S. dollar.
The move was the execution of a code-red strategy LFG had been planning for months: Since January, LFG had stockpiled over $3.5 billion in reserves of Bitcoin,…
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