Conversation
The Luna Foundation Guard does indeed build btc reserves when UST demand is in excess of UST redemptions - this is explicitly stated.
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To suggest that this is “Do’s exit liquidity” is disingenuous on two levels:
1. LPs only benefit from LFG activity - reserves are deployed to buy if there are more ust in the pools, and replenished when theres less ust - and LPs earn fees while doing this
2. LFG is nonprofit…
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… and i don’t own or benefit at all from its treasury
To call the practice of building reserves exploiting exit liquidity is identical to saying all defi is exit liquidity for usdc to build those goddarn 100% usd reserves
Let’s not stoop to clickbait, thanks much
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