Conversation

Do Kwon 🌕
@stablekwon
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
198
2,004
Do Kwon 🌕
@stablekwon
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.
15
545
Do Kwon 🌕
@stablekwon
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
@astroport_fi
team. Until then, the LFG council decided to err on the side of caution.
9
574
Do Kwon 🌕
@stablekwon
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.
79
998
ChimpZoo 🇸🇦
@ThinkingBitmex
Don't you think you're being gamed here - Buying at far higher prices, then being forced to offload at far lower prices? What makes you think over time these reserves won't dwindle as you continue to benchmark against a spec asset such as BTC?
3
63
Do Kwon 🌕
@stablekwon
Well we minted UST with Luna, where the average price was $100 for the mint We bought bitcoin with it at average price of ~$41k or so Think it was not a bad trade?
12
61
ChimpZoo 🇸🇦
@ThinkingBitmex
Why not just buy tether or a basket of stables to backstop the UST price? You're backstopping a pegged asset with an unpegged speculative asset, and the point is that these systemic risks often play out at the same time that your speculative asset is at depressed prices
3
64
ChimpZoo 🇸🇦
@ThinkingBitmex
Replying to
@stablekwon
Fair To be frank, I've given you a lot of criticism over the last two months, and I do believe you're well intentioned If you ever want to discuss privately ideas I'm more than happy to join the conversation with all the other minds that you strategize with re Luna and treasury
2
62
Show replies
Larry Cermak 🫡
@lawmaster
Replying to
@stablekwon
and
@ThinkingBitmex
If a lot of the decisions about how the peg is defended in distress are made by a council, do you consider that decentralized? Only a few parties have been actively buying UST over the last few days
2
58
Do Kwon 🌕
@stablekwon
Definitely not desirable! the goal was to have an onchain btc redemption mechanism ready by the next contraction, we just lost the race against time. More here:
Quote Tweet
Do Kwon 🌕
@stablekwon
·
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/t/bitcoin-rese
Show this thread
3
105
Show replies
Do Kwon 🌕
@stablekwon
Quote Tweet
Do Kwon 🌕
@stablekwon
·
6/ The LFG council currently consists of @KanavKariya @nickplatias @madcapslaugh @Remi_Tetot @TaiPanich_ @ZeMariaMacedo and myself, and we made this decision via an unanimous vote of the council.
Show this thread
2
19
Show replies