Bitcoin News and Finance
Luna Foundation Guard Launches to Support UST Peg as Stablecoin Blows Past $11B Market Cap Skip to main content

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

luna

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, informing followers 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.

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.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory