Wallet with little money in, text asking with the LGF did with their reserve?

The Luna Foundation Guard (LFG) disclose how the funds where used to try and save the UST

By Patch | Things of note and other interesting stuff | 17 May 2022

In a series of 11 tweets posted yesterday the Luna Foundation Guard (LFG), disclosed how they used the massive reserve, that was at their disposal. In an attempt to save the UST. Let us take a look at what was done.

What was at their disposal

In the first tweet, the LFG discloses the full extent of the reserves that were available to them on May 7th.

And by the looks, their reserve was indeed vast. I will neither do an attempt to try and calculate their wort. As I feel that would not really serve or contribute much at this point. Instead, I will use the previous estimation of 3,5 billion that has been used by, if not all, most.

The LFG then explains that as things started to unfold on May 8th. They started to convert their assets to UST in swaps directly. And also started to move their massive amount of Bitcoins. The movement of Bitcoins was done in order for them to be able to execute massive swaps on short notice. They initially moved 52,189 of there, just over, 80 000 Bitcoins. This was done as they simultaneously swapped their USDT and USDC to UST.

Al in all this initial aggregation of UST resulted in the LFG getting a whopping 1,565,889,533 UST. To add to their already existing pile of close to 700 000 tokens.

The second movement

As we all know, this initial step did little to stop the fall of the UST. It merely slowed it down, buying some time. And as the situation got worse and the UST fell even further. On May 10th the LFG was ordered to do everything in their power to try and save the situation. As they put it in their 5th tweet:

pursuant to a Master Services Agreement dated January 10, 2022 -LGF, tweet May 16th

And in case you, just as I, are scratching your head over the first word there. Pursuant, it means "in accordance with (a law or a legal document or resolution)." Thank you, Google. In short, they are saying that this Master Service Agreement, dating back to January 10th told them what to do. And they followed those instructions.

This just meant that they transfers the rest of their Bitcoins, all but 313 of them. But they also swapped a large amount of UST to LUNA in order to try and protect LUNA from a governance attack. This LUNA was then staked across multiple platforms.

Sadly this, just as before, was unable to stop what would later unfold.

Going forward

As of the time of the tweet by the LFG. Their available resources are as follows:

This means that there still are some unused funds in their possessions. As both their BNB and AVAX funds remained untouched. Which I guess is a silver lining in this whole situation.

The LFG then also ends by saying that they plan to use the remaining funds available to them to compensate the current UST holders. Starting with the smallest holders first.

Exactly what this means, and how it will be done is still something we know little to nothing of. I can see this potentially can cause a surge in the demand for UST. And people could buy small batches across wallets, sitting on it looking to be able to 5x their money. So they need to think once and twice about how they will proceed with this plan.

What do you think of it all, do you trust the LGF? DO you think they should have acted differently, if so what should they have done instead? Please share your thoughts in the comments down below on this or anything else relating to the whole LUNA situation.

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