Terraform Labs has donated an additional 10 million LUNA worth approximately $880 million to the nonprofit Luna Foundation Guard (LFG). The funds can be used to invest in bitcoin to stabilize the Terra USD (UST) algorithmic stablecoin.

TFL donated an additional 10 million $LUNA for @LFG_org. https://t.co/tNirkgGGm0

— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) 14 April 2022

LFG was established in January 2022. Its purpose is to enhance the Terra ecosystem and increase the sustainability of UST. The organization is overseen by an independent board of directors, which includes industry experts and heads of crypto companies, including Terraform Labs founder Do Kwon.

In March, the company behind Terra sent 12 million LUNA to LFG. In the same month, the organization began creating a fund designed to “quickly” provide the necessary liquidity in bitcoin to maintain a stable UST price.

Earlier, Kwon stated that the project team is working to bring a new form of tokenized bitcoin to the Terra blockchain. According to him, upon completion of the process, UST will become a “hybrid” stablecoin that allows you to buy BTC directly at a 1% premium.

At the time of this writing, LFG has $2.43 billion in assets on its balance sheet, of which almost 70% ($1.7 billion) is in bitcoin. Also, the organization’s reserve fund includes USDC and USDT stablecoins, as well as LUNA tokens.

According to BitInfoCharts, LFG has bought more than 42,406 BTC in total.

Recall that in April 2022, LFG and Terraform Labs announced that they will invest $200 million in AVAX tokens of the Avalanche project. The aim is to expand reserves and increase the sustainability of the UST.