LFG Will Lend OTC Trading Businesses $750 Million in Bitcoin.
The Luna Foundation Guard (LFG) observed that the crypto asset market's overall volatility has been strong these days.
In a tweet thread, LFG's mandates to actively screen the UST anchor's stability and broaden the Terra economy, especially in the face of volatile traditional markets and uncertain macro conditions.
As a result, the LFG Council has decided to put the following into effect: 1. Provide OTC trading firms with $750 million in Bitcoin to assist safeguard the UST peg. 2. As market circumstances improve, loan 750 million UST to accumulate BTC.
The thread continued, that as market conditions progressively stabilize, "the traders will trade money on both sides of the market to help accomplish both #1 and #2, maintaining parity of the LFG Reserve pool (denominated in BTC) as market conditions grow to stabilize."