The funds are to be burned to mint UST, helping to grow the LFG’s reserves that the foundation calls a “further layer of support to ensure that UST maintains its peg”.
In a related development, the governance token of Terra-based Mirror Protocol (MIR) was added to Kraken as part of a package that also included SushiSwap and Bancor.
The announcements can drive investors bullish despite the ongoing SEC investigation into Terraform Labs and its CEO Do Kwon over Mirror. According to the SEC, Mirror’s synthetic assets model is akin to derivatives, which are subject to strict regulations in the US. The SEC obtained a court order to enforce compliance with investigative subpoenas issued in late 2021. The order is now in force following a rejection of Terraform’s request for a further stay pending appeal.
