The Luna Foundation Guard (LFG), nonprofit managing UST algorithmic stablecoin, has launched a technical audit to offer full transparency into property and efforts to repeg TerraUSD (UST) in May. LFG goals to reply all allegations together with misappropriated funds, insiders, holdings funds in different wallets, and funds frozen. The report claims LFG and TFL used virtually $3.4 billion to defend the UST peg.
LFG Spent $2.8 Billion to Defend UST Peg
The Luna Foundation Guard in a tweet on November 16 disclosed a technical audit report by third-party auditing agency JS Held. According to the audit report, LFG spent virtually $2.8 billion between May 8-12 to defend TerraUSD’s (UST) peg. This consists of 80,081 BTC and 49.8 million in stablecoins.
Moreover, Terraform Labs spend an extra $613 million to defend the peg. The report claims LFG spent all funds to stop UST from dropping its peg, with remaining balances being the one funds remaining.
LFG was the second-largest holder of Bitcoin and deliberate to extend its Bitcoin reserves to $10 billion. Unfortunately, almost $2.5 billion plummeted immediately and didn’t defend the UST peg amid excessive market volatility. It made a $60 billion affect on the lives of crypto traders.
Moreover, the Luna Foundation Guard additionally goals to reply allegations in opposition to it. It asserts no LFG funds had been misappropriated, used to profit insiders, or saved in different secret wallets. Also, all LFG are saved in self-hosted wallets and haven’t moved since May 16.
Terra founder Do Kwon claims the Terra case is completely different from different crypto failures. He additionally cited the failure of FTX the place its operators misused buyer funds for monetary acquire.
“While there have been multiple recent failures in crypto, it is important to distinguish between Terra’s case, where a transparent, open-source decentralized stablecoin failed to maintain peg parity and its creators spent proprietary capital to try to defend it.”
Some consider LFG and TFL should be audited by huge 4 auditing companies contemplating the scale elements. Do Kwon replied that the scale isn’t huge now.
Terra Tokens Saw Increased Volume
Terra tokens together with LUNA, LUNC, and USTC (beforehand UST) recorded elevated buying and selling quantity. LUNA worth is buying and selling at $1.66, down over 1% within the final 24 hours. Meanwhile, Terra Classic (LUNC) and USTC noticed over 3% and 1% leap, respectively. Terra Classic is buying and selling at $0.00017
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