- The stablecoin the Luna Foundation Guard (LFG) is losing its peg to the US dollar as the crypto market sells off.
- As Data from coingecko show, TerraUSD (UST) was temporarily trading at just $0.66, well below the $1 mark usual for stablecoins.
- The algorithmic stablecoin UST typically leverages the Terra Network’s native cryptocurrency (LUNA) to provide pegging to the US dollar.
- The LFG took note of the threat of decoupling from the world reserve currency and initiated appropriate countermeasures.
- Among other things, the Foundation announced that it would lend Bitcoin from its own holdings in order to ensure the stability of UST.
- The measures seem to be paying off so far. At press time, TerraUSD is trading at $0.93.
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