TechFlow news — Jump Trading has submitted a technical proposal within the Terra community to discuss how LFG should deploy its Bitcoin reserves to help maintain UST's peg. The proposal outlines establishing a liquidity pool, similar to the on-chain mechanism of LUNA-UST, to provide anchoring support when UST risks depegging downward, and relies on traders to replenish reserves after a crisis. Specific topics include how the Bitcoin reserve would function, prevention of oracle attacks, and how Bitcoin would be tokenized.
According to reports, Terra founder Do Kwon previously announced plans to allocate $3 billion to build up a BTC reserve. Currently, the Luna Foundation Guard (LFG), the organization supporting Terra's ecosystem, holds a total of 27,784 BTC, worth approximately $1.31 billion.
