Fun

Luna Foundation Guard Launches to Support UST Peg as Stablecoin Blows Past $11B Market Cap

News Feed - 2022-01-24 08:01:52

Luna Foundation Guard Launches to Support UST Peg as Stablecoin Blows Past $11B Market Cap


The Luna Foundation Guard, a new decentralized organization developed to support the Luna ecosystem, has been launched last week in Singapore. The institution will offer funding in the form of grants to support initiatives built on top of the Luna network. One of its biggest functions will be to establish a “forex reserve” that will aid UST, the companion stablecoin of the Luna ecosystem, to maintain its peg. Luna Foundation Guard Launches to Support Terra Ecosystem


The Luna Foundation Guard, a non-profit organization, has launched to help support and maintain the Terra ecosystem as a decentralized counterparty to Terraform Labs, the company behind the UST currency. This organization will have different functions, including the promotion of the ecosystem and also the direct financing of different programs through grants, which will be given through its website starting January 31.


Do Kwon, co-founder of Terraform Labs, announced this new initiative via Twitter, informingfollowers that the company had donated 50 million LUNA, worth $4 billion, to this initiative. The organization will be constituted in Singapore and will be overseen by a group of founders and leaders, including Do Kwon, Nicholas Platias, Kanav Kariya, Remi Tetot, Jonathan Caras, Jose Maria Delgado, and Bill Chin. UST Stability the Main Goal


The foundation will also act to maintain the peg of the UST stablecoin to the U.S. dollar. In this sense, Kwon stated on social media it will work towards:


First, building a decentralized forex reserve against which $UST can be redeemed during currency contractions. It will work towards reserves to operate decentralized and onchain.


UST, unlike similar stablecoins whose value is collateralized, works by maintaining an equilibrium between two assets in the Terra ecosystem. This might affect the peg of the currency against the dollar if there are not enough incentives in the market to make a profit via the arbitrage of UST and Luna. The establishment of this organization aims to avoid such a situation happening.


The UST stablecoin has grown immensely with LUNA, the native asset of the Terra ecosystem, which now is the number 9 cryptocurrency by market cap. In the same way, UST has reached a market capitalization of more than $11 billion, leaving behind DAI, its Ethereum-based counterpart, as the decentralized stablecoin project with the most value in the market. Tags in this story Cryptocurrency, do kwon, lfg, LUNA, luna foundation guard, terraform labs, UST


What do you think about the establishment of the Luna Foundation Guard to protect UST’s stablecoin peg system? Tell us in the comments section below. Sergio Goschenko


Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. Mercadolibre Gets Closer to Crypto With Investments in Paxos and Mercado Bitcoin NEWS | 18 hours ago New BHUNT Malware Targets Cryptocurrency Wallets via Software Installs NEWS | 3 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleNo Developed Nation Bans Cryptocurrencies, Telegram Founder Pavel Durov Warns Russia Next article‘Ponzi Schemes Have Created a Negative Reputation for the Industry’ — Uganda Blockchain Advocate Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItJoe Biden Claims Inflationary Pressure "Rests With the Federal Reserve," Praises the Fed"s "Extraordinary Support" 


On Wednesday, U.S. president Joe Biden explained that the country’s central bank was dealing with a large share of the inflationary pressures the American economy is dealing with today. Biden welcomes the possibility of tightening monetary easing and noted that ... read more.JPMorgan: Ethereum Losing Ground to Other Crypto in NFT Market Due to High Transaction Fees, Congestion Tom Brady"s Autograph NFT Agency Gets $170 Million in Series B Funding Round Bank of Russia to Monitor Banks’ Dealings With Crypto Exchangers Robinhood Begins Rolling Out Crypto Wallets to Select Customers

News Feed

‘AWS for Web3’ Pocket Network Shakes Up Infrastructure of the Internet
‘AWS for Web3’ Pocket Network Shakes Up Infrastructure of the Internet press release PRESS RELEASE. Tampa Bay, Florida, U.S.A – 16th January 2022– Pocket Network &
‘Feels surreal’ — Bitcoin sticks to $68K as market ignores 200K BTC US election pledge
William Suberg11 hours ago‘Feels surreal’ — Bitcoin sticks to $68K as market ignores 200K BTC US election pledgeBTC price gains fail to materialize as Donald Trump and others promise to build a giant Bitcoin strate
Bitmain Unveils Cheaper T19 Bitcoin Miner to Regain Lost Market Share
Bitmain Unveils Cheaper T19 Bitcoin Miner to Regain Lost Market ShareBitmain on Monday released the Antminer T19, a cheaper bitcoin mining machine, in an effort to regain lost marke
Dogecoin Open Interest Averages $2 Billion In June As Price Struggles Below $0.2
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
US Treasury to Reveal Crypto Holdings as SEC and Gemini Shake Hands – Will the Hype Rally These Best Altcoins?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Argentinian Government Advances the Creation of a National CBDC
Argentinian Government Advances the Creation of a National CBDC The Argentinian government has taken the first steps in the launch of its own central bank digital currency (CBDC).
97% of People Consulted by UK Financial Regulator Opposed Crypto Derivatives Ban
97% of People Consulted by UK Financial Regulator Opposed Crypto Derivatives BanThe Financial Conduct Authority (FCA) ban on crypto derivatives sales to retail investors has set ton
Digital euro to be ‘most private electronic payment option’
Daniel Ramirez-Escudero10 hours agoDigital euro to be ‘most private electronic payment option’Since the inception of the digital euro, many critics have called the proposed digital currency a surveillance tool.903 To
Bitcoin Could Break The Dollar — $250K Prediction Still In Play, Billionaire Says
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
US Lawmaker Likes Bitcoin — Urges Policymakers to Embrace Innovation in Regulation
US Lawmaker Likes Bitcoin — Urges Policymakers to Embrace Innovation in Regulation U.S. Representative Patrick McHenry is pro-bitcoin. He is now hosting the Bi
Lawsuits and Ripple Labs Sales are Bad News for XRP
XRP is down 5 percent on the day and has seen a significant retreat this year. | Source: Shutterstock By CCN Markets: To say that Ripple (XRP/USD) is a laggard would be a huge u
Dubai-Headquartered Crypto Exchange MaskEX Launches Virtual Card for Worldwide Spending and Welcomes Ben Caselin as Vice President to Drive Global Expansion Effort
Dubai-Headquartered Crypto Exchange MaskEX Launches Virtual Card for Worldwide Spending and Welcomes Ben Caselin as Vice President to Drive Global Expansion Effort press release PRE