Terra Luna Foundation Guard (LFG) purchased 5,040 BTC ($222 million) earlier today, now Terra’s stablecoin -TerraUSD (UST) staking program will be available to more than 30 million users on Binance.
Binance, a centralized cryptocurrency exchange, announced a new TerraUSD (UST) staking program on Wednesday. Although Binance did not disclose the underlying decentralized finance protocol responsible for the staking rewards, Do Kwon, Terra Luna’s (LUNA) co-founder, credited Terra’s flagship Anchor protocol with the high return.
Terra’s (Luna) ecosystem is made up of two tokens: UST, an algorithmic stablecoin, and LUNA, a governance/equilibrium token. The Anchor protocol claims to be a “crypto savings account,” allowing users to deposit their UST and receive up to a 20% annual percentage yield. Borrowers pay interest on UST loans while also staking money from their collateral to fund the savings rate.
There is still an imbalance between borrowers and lenders at the time of writing, with 12.4 billion UST in deposits dependent on income provided by only 3.47 billion UST in loans.
When this happens, Anchor will have to dip into its reserves to pay out the APY it pledged. Anchor has less than 340 million UST left in its holdings, according to data from an unauthorized tracking resource called Terra.engineer, down from around 450 million UST last month.
Despite the dropping reserve count, the Terra development team is maintaining protocol by infusing additional reserve funds and introducing more income-generating ways.
Luna Foundation Guard (LFG) buys additional Bitcoin
Luna Foundation Guard (LFG) purchased another 5,040 BTC ($222 million) earlier today, raising its total stack to 35,768 BTC ($1.577 billion) according to statistics from the entity’s official Bitcoin (BTC) address.
LFG was founded in January with the goal of expanding the Terra ecosystem and ensuring the long-term viability of its stablecoins. Do Kwon previously stated that he intended to create a decentralized foreign exchange, or forex, reserve for UST using both LUNA and BTC. LFG intends to increase its BTC reserves to $10 billion, with subsequent purchases based on the amount of UST generated after that.
