The Luna Basis Guard (LFG), nonprofit managing UST algorithmic stablecoin, has launched a technical audit to supply full transparency into belongings and efforts to repeg TerraUSD (UST) in Could. 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 nearly $3.4 billion to defend the UST peg.
LFG Spent $2.8 Billion to Defend UST Peg
The Luna Basis Guard in a tweet on November 16 disclosed a technical audit report by third-party auditing agency JS Held. In response to the audit report, LFG spent nearly $2.8 billion between Could 8-12 to defend TerraUSD’s (UST) peg. This consists of 80,081 BTC and 49.8 million in stablecoins.
Furthermore, Terraform Labs spend an extra $613 million to defend the peg. The report claims LFG spent all funds to forestall 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. Sadly, almost $2.5 billion plummeted immediately and did not defend the UST peg amid excessive market volatility. It made a $60 billion impression on the lives of crypto traders.
Furthermore, the Luna Basis Guard additionally goals to reply allegations towards it. It asserts no LFG funds have been misappropriated, used to learn insiders, or saved in different secret wallets. Additionally, all LFG are saved in self-hosted wallets and haven’t moved since Could 16.
Terra founder Do Kwon claims the Terra case is totally different from different crypto failures. He additionally cited the failure of FTX the place its operators misused buyer funds for monetary achieve.
“Whereas there have been a number of latest failures in crypto, it is very important distinguish between Terra’s case, the place a clear, open-source decentralized stablecoin failed to take care of peg parity and its creators spent proprietary capital to attempt to defend it.”
Some imagine LFG and TFL have to be audited by large 4 auditing companies contemplating the dimensions features. Do Kwon replied that the dimensions is just not large now.
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