LunaFoundationGuard (LFG), a nonprofit that supports the Terra blockchain ecosystem, is seeking to raise more than $1 billion to back algorithmic Stablecoin UST, according to three people familiar with the matter.
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, and a deal is currently under negotiation. LFG will offer investors the opportunity to buy LUNA tokens at a 50% discount, but These tokens will be given a two-year vesting period.
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.