Luna Foundation Guard (LFG), terra It announced that it has raised $1 billion in funding through the sale of its blockchain’s own token, LUNA.
Terra to Use $1 Billion Fund to Support UST
Cryptocurrency Jump Crypto and Three Arrows Capital led the event, which went down in history as one of the largest funding rounds in the industry’s history. In addition, Republic Capital, GSR, Tribe Capital, DeFiance Capital and many other investors participated in the event.
The non-profit organization LFG was founded in January to support the growth of the Terra ecosystem.
Terra’s largest stablecoin of $1 billion in revenue TOP for bitcoin It has been announced that it will use it to create a forex reserve in
UST Has Tripled In The Last Three Months
UST is particularly well-known for its extremely widespread use in DeFi ecosystems. The total market capitalization of UST, a US dollar-pegged stablecoin, has nearly tripled since November last year, reaching $12 billion.
LFG said that they aim to keep the UST stablecoin stable even with the sharp declines that may occur in the cryptocurrency market, thanks to a capital injection of $ 1 billion into the Terra ecosystem.
Normally, it is thanks to LUNA that the price of UST remains stable in the LUNA ecosystem. Users can obtain UST by burning LUNA tokens, and LUNA tokens by burning UST tokens. The protocol ensures that the $1 LUNA token is always burned for 1 UST.
The aforementioned $1 billion fund was created to be used in case LUNA stocks run out.