The Luna Foundation Guard has closed a $1 billion funding round in an over-the-counter sale of Terra’s LUNA towards a BTC denominated stablecoin reserve.
Three Arrows Capital, Jump Crypto, Republic Capital, GSR, DeFiance Capital, and Tribe Capital participated in the fundraising.
The tokens purchased by Jump Crypto in the sale will be fixed up to a four-year vesting period. The firm’s Kanav Kariya likens the reserve mechanism to that of central banks.
The funds aim to set up a bitcoin-denominated forex reserve for Terra’s largest stablecoin, UST. The reserve is aimed at stabilizing the digital asset during high liquidations.
UST is an algorithmic stablecoin with a market cap of $12 billion backed by the US dollar at a ratio of 1:1. The stablecoin relies on balancing the demand and supply of UST to stabilize the price.
Luna Foundation Guard is a non-profit group in Singapore. The entity was created last month to advance the development of the Luna protocol.
Source: The Block