Deploying more capital, steady lads – Months after the crash of the Terra Luna ecosystem, and the depeg of its main stablecoin, the UST, founder Do Kwon’s words still resonate in the minds of those affected by the cataclysm, including yours truly.
LUNA FOUNDATION GUARD RELEASES AUDIT ON UST DEFENSE
Eager to prove their good faith regarding the defense of the UST peg and the use of their reserves in various cryptos, Terraforms Labs (TFL) and the Luna Fondation Guard (LFG) have just published the external audit report established by the firm JS Held.
Without going into the details of the figures that populate the 31 pages of the audit report, it concludes that the LFG used almost all of its reserves to defend the UST peg between May 8 and May 12.
In total, nearly $2.8 billion was used by LFG to defend the peg, but without success. This is the reason for the growing interest of the authorities in the regulation of algorithmic stablecoins.
That is 80,081 bitcoins sold by LFG to acquire USTs and support the main stablecoin of the Terra blockchain. As of May 12, only 313 of the 80,394 bitcoins remained in LFG’s pockets as the Foundation’s main shield to support the ecosystem in case of a blow.
The same report states that TFL also used $613 million of its own funds in the same battle to defend the UST peg.
Following the publication of this audit report, the sulphurous Do Kwon, still wanted by the authorities, spoke. He said it was important to distinguish the failure of a protocol (which was intended to be transparent and which advocated the use of an opensource and decentralized stablecoin that the efforts of its creators and developers were not enough to save) from the failure of some centralized platforms whose actors used the money of customers to favor their own financial interests.