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1/ The LFG Council just voted to deploy 1.5B in capital (0.75B in BTC, 0.75B in UST) to allay market concerns around UST. Some more context on why and how:

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LFG | Luna Foundation Guard

1/ Over the past several days, market volatility across crypto assets has been significant. The market turmoil is also reflected by the past week's uncertain macro conditions across legacy asset classes.

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2/ First, *LFG is not trying to exit its bitcoin position*. The goal is to have this capital in the hands of a professional market maker such that: 1) Buy UST if price < peg 2) Buy BTC if price >= peg thus significantly strengthening the liquidity around UST peg

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3/ While buys and sells of UST are not meaningfully directional now, we felt it was valuable to have capital ready to be deployed in the current market. As markets recover, we plan to have the loan redeemed to us in BTC, increasing the size of our total reserves.

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4/ We had hoped that the onchain bitcoin reserve system would be live by the time the Terra economy would contract, thereby obviating the need for LFG discretionary intervention Spec here:

agora.terra.money

Discuss, organize, and grow decentralized communities

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5/ While this did not happen, allowing BTC to be redeemed against US on an onchain dex, we are just a few weeks away from a testnet launch developed by the

team. Until then, the LFG council decided to err on the side of caution.

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6/ The LFG council currently consists of

and myself, and we made this decision via an unanimous vote of the council.

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7/ This will be an important opportunity for the terra and wider crypto community to gather empirical data on how LFG operates & fits into the Terra ecosystem. Observe over the next few days not on whether LFG chose to deploy reserves, but on how.

5:17 AM · May 9, 2022Twitter Web App

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8/ I'll be hanging around this thread to answer any questions people may have.

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Frederick Fungᵍᵐ

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This is great! Deployment is key into further strengthening the ecosystem. Will keep my eyes on the strategy moving forward!

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Is it great? It sounds like what the central bank of a tinpot economy would say when trying to prop up its currency. Algorithmic stable coin?

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Don't wrap your Bitcoin /

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Can I be your garden boy

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AllMyExesLiveInExcess

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I think we've all observed that you and five other people make the calls. Sounds super-duper decentralized. Maybe you should get into another line of work. This doesn't seem like something you're very good at

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Mr. JokeЯ (Ⱥ)

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This is the most slept on post. LFG.

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Looks like FULL deployment.

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@CryptoEaling121

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Humility goes a long way. Ur not so cocky anymore

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splitverse.eth (Plan Zk)

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I’ve reached the spiritual level of patience harming oneself is haraam 😃 nothing can cause me any pain. إنالاهه ما سابيرين let’s go #sabr #ust is the future

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Just a few days ago Do Kwon said that 95% of companies will die, and it's fun to watch those companies die

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Immature and not nice at all and this doesn't give me hope Luna will survive. It looks like it might be fun to watch himself now crash. Maybe he already knew this was coming and thought to share that.

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