Terra, one of the top ten cryptocurrency projects by market valuation, recently passed a UST-related milestone. The Luna Foundation Guard (LFG), a non-profit organization, revealed that the protocol’s flagship stablecoin, UST, had surpassed its maximum daily issuance. This is because there is a high level of interest in minting the asset.
The Terra UST Issuance Has Reached Its Maximum
The Terra protocol is seeing a significant increase in the amount of USTs issued. According to the Luna Foundation Guard, an organization dedicated to supporting the Terra ecosystem and stabilizing the value of its assets, the protocol has reached peak issuance of UST for many days as demand for the decentralized, dollar-pegged stablecoin has increased.
The Luna Foundation Guard declared that people seeking UST were heading to secondary marketplaces. It elaborated:
As a result, people have switched to the curve pool for UST, causing the pool to become unbalanced.
Curve is a decentralized finance system that specializes in trading stablecoins and pegged tokens with very little slippage. The foundation chose to adjust the pool immediately using its own finances.
Bitcoin is the primary focus.
The Luna Foundation Guard said that it would achieve this rebalance by exchanging 5 million LUNA for UST, which would then be pumped straight into the liquidity pool. This step was decided by the organization’s Governing Council, and the transactions will take place over the next two weeks.
Furthermore, the foundation stated that the revenues of this swap would be utilized to purchase more bitcoin in order to increase the reserve that the organization keeps in order to stabilize the value of UST in the event of market imbalances. The decentralized forex reserve was unveiled on February 23rd, with a $1 billion token sale led by VC firms such as Jump Crypto & Three Arrows Capital, Defiance Capital, Republic Capital, GSR, and Tribe Capital.
Do Kwon, co-founder of Terraform Labs, has indicated support for this endeavor aimed at securing the UST’s dollar peg. Kwon recently reaffirmed his dedication, saying:
The Terra Protocol will be one of the largest Bitcoin holders.
According to Coingecko data, the market capitalization of UST has increased from $11.3 billion to $13.7 billion in the previous 30 days.