LFG Seeks Over $1 Billion to Back UST Stablecoin

 The Luna Foundation Guard (LFG) group is seeking to raise more than $1 billion to support the UST algorithmic stablecoin after it lost parity with the U.S. dollar, according to three people familiar with the matter. Algorithmic stablecoins like UST are meant to maintain a one-to-one peg to the price of an underlying fiat currency like the U.S. dollar. But shares in UST fell as low as $0.61 on Monday before recovering to $0.91 amid a broader sell-off in the cryptocurrency market. The group is now looking to raise fresh capital from some of the biggest investment firms and market makers in the industry, the sources said. The agreement, currently under negotiation, offers investors the opportunity to purchase LUNA tokens at a 50% discount, although the tokens will be subject to a two-year redemption schedule. As previously reported, LFG announced on Monday that it had lent $1.5 billion worth of Bitcoin and UST to third-party trading firms. LFG initially sought to buy up to $10 billion in bitcoin to support the peg of the stablecoin. (theblockcrypto)