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1/ All your $AVAX are ours. a 🌕🔺 #TERRAVAX thesis 🧵 :

Luna Foundation Guard buys $100 million in AVAX for UST’s reserve

LFG bought $231 million in bitcoin the day prior, but this appears to be the first time LFG is buying into another cryptocurrency.

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Do Kwon

@stablekwon

Apr 8

Cant partner with yourself bruv

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The3rd

@KSBISTSR

Apr 8

$AVAX use $UST in their ecosystem thus many many $LUNA get burned 👍...you know what this does to price

Nobody in particular

@icanhasgains

Apr 8

But he literally just said that this move will mean UST gets minted by burning AVAX, not LUNA:

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Do Kwon

@stablekwon

· Apr 8

6/ This means that as $UST adoption grows on Avalanche, $AVAX becomes more scarce - aligning the growth of the stablecoin with the L1's developers and users.

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Do Kwon

@stablekwon

Apr 8

Didn't say burn, said it gets more scarce AVAX gets locked up to unlock $UST Its the same as this, except replace $BTC with $AVAX

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Daniel Lux.kuji

@Thuxo_Lux

Apr 8

Fantastic, so it'd be redeemed at slightly less than 1 to 1 just like with BTC during a black swan?

Yes

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Wider spread though

6:13 AM · Apr 8, 2022Twitter Web App

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Thanks

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That's what she said

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Will you always be able to redeem 1 UST with 1$ worth of AVAX or is there also a scenario possible where you can only redeem slightly less because the desired AVAX reserve threshold is reached? Let’s say if the reserve exceeds the total UST value on the AVAX chain