Luna Foundation Guard Launches to Support UST Peg as Stablecoin Crosses $11B Market Cap –

The Luna Foundation Guard, a new decentralized organization designed to support the Luna ecosystem, was launched in Singapore last week. The institution will offer funding in the form of grants to support initiatives building on the Luna network. One of its biggest functions will be to establish a “forex reserve” that will help UST, the Luna ecosystem’s companion stablecoin, maintain its peg.

Luna Foundation Guard launches to support the Terra ecosystem

The Luna Foundation Guard, a non-profit organization, has started to support and maintain the Terra ecosystem as a decentralized counterparty to Terraform Labs, the company behind the UST currency. This organization will have various functions including promoting the ecosystem and also directly funding various programs Grants, which will be made available via the website from January 31st.

Do Kwon, co-founder of Terraform Labs, announced this new initiative via Twitter, inform Followers that the company has donated 50 million LUNA to this initiative, worth $4 billion. The organization is founded in Singapore and led by a group of founders and leaders including Do Kwon, Nicholas Platias, Kanav Kariya, Remi Tetot, Jonathan Caras, Jose Maria Delgado and Bill Chin.

UST stability the main goal

The foundation will also act to maintain the UST stablecoin’s peg to the US dollar. On that note, Kwon specified On social media, it will work towards:

First, building a decentralized foreign exchange reserve against which $UST can be redeemed during currency contractions. It will work towards reserves to operate decentralized and onchain.

Unlike similar stablecoins whose value is collateralized, UST works by maintaining a balance between two assets in the Terra ecosystem. This could impact the currency's peg to the dollar if there is not enough incentive in the market to make a profit via the UST and Luna arbitrage. The creation of this organization aims to avoid such a situation.

The UST stablecoin has grown immensely with LUNA, the native asset of the Terra ecosystem, now the number 9 cryptocurrency by market cap. In the same way, UST has achieved a market cap of more than 11 billion dollars, left behind DAI, its Ethereum-based counterpart, is the largest value decentralized stablecoin project on the market.

What do you think about the establishment of the Luna Foundation Guard to protect UST's stablecoin peg system? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price surge occurred in December 2017. He has a background as a computer engineer, lives in Venezuela and is affected by the cryptocurrency boom on a social level. He offers a different perspective on crypto success and how it helps the unbanked and underserved.

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