The Luna Foundation Guard (LFG) plans to loan $750 million worth of Bitcoin (CRYPTO: BTC) to market makers as part of a wider strategy to protect the UST stablecoin peg.
What Happened: The Terra (CRYPTO: LUNA) blockchain’s stablecoin TerraUSD (CRYPTO: UST) briefly lost its peg to the U.S. dollar on Saturday in what the community described as a “coordinated attack.”
The weekend’s events prompted the LFG Council to come out with a way to tackle the issue.
The blockchain said it plans to loan $750 million worth of BTC to over-the-counter trading firms to protect the UST peg and loan $750 million UST to accumulate BTC as conditions normalize.
5/ The traders will trade the capital on both sides of the market to help accomplish both #1 and …
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