- UST now has a $1B decentralized reserve in BTC
- It is aimed at reducing the reflexivity of the system and strengthens the position of the stablecoin in conditions market volatility
- Project initiator non-profit group LFR performed with the support of Three Arrows Capital and Jump Crypto
Luna Foundation Reserve raised $1 billion in a massive private deal to sell the LUNA token. These funds will be used to form a reserve of the UST stablecoin in bitcoins.
This on his Twitter page on Tuesday, 22 February, said the administration of the resource Terra. UST is the native stablecoin of this particular project.
The publication states that the LFR token sale was the largest in history. The agreement was headlined by Jump Crypto and Three Arrows Capital. In addition to them, the contract also includes many other contractors.
According to the statement of the representative of Terra, the formation of a reserve will allow leveling one of the most significant shortcomings of native stablecoins. We are talking about a scenario when the level of demand significantly prevails over supply, which leads to the collapse of the exchange rate.
“We believe that
mass adoption of UST should already have disproved any negative expectations. However, the creation of a decentralized reserve provides additional support to the asset in relation to the reduction cycle, which leads to a decrease in the reflexivity of the system,” Terra said in a statement.
