Market analyst and advisor to the Luna Foundation Guard (LFG) Remi Tetot has offered an update on the treasury’s balances. Tetot tweeted about this on May 16, saying that it was time he broke the silence and informed the community of the steps soon to be taken.
From a personal point of view, I remain available to LFG in my current advisor role as they need, but will take a step back as soon as solutions are in place.
— Remi Tetot 🌑 (@Remi_Tetot) May 16, 2022
Luna Foundation Guard depleted its $3 billion reserves to try to save UST
Tetot said that the Luna Foundation Guard’s balance reserves are coming and that it is just waiting for the exchange to confirm the timing and transaction. He also said that the focus is currently on amending small wallets, builders, and stakers.
The statement is just an attempt at visibility for the Terra community, which has been battered by the recent crash. In response to being asked what the balance reserves actually entailed, Tetot said that more information will be provided soon and that the announcement was just for better transparency.
As of May 7, the LFG had a reserve consisting of various assets, including over 80,000 BTC and 23.5 million USDC. It has several other assets, but these two make up the bulk of the reserve.
2/ 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.
— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
The LFG has been working overtime to help correct the Terra ecosystem crash. Both LUNA and UST continue to be at low points, but some changes are taking place that make investors hopeful for a recovery.
The move follows widespread speculation about the state of its reserves and how it would move to compensate users who lost vast amounts of money.
Amid the UST chaos, LFG was said to be seeking even more funds, an additional amount of over $1 billion, to defend the stablecoin’s peg, but those efforts seem to have stalled since LFG hasn’t made any announcements in that regard.
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