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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

Commonwealth

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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

@astroport_fi

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.

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

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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?

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?

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