The Luna Foundation Guard announced today it had voted in favor of deploying $1.5 billion in Bitcoin and TerraUSD to help preserve its peg to the US dollar.
The decision to lend the sumcomes at the back of a heavy slump across the cryptocurrency market over the last seven days that has seen the majority of the top assets register double-digit losses. Bitcoin, the market leader, has shed 15% during this period but is not hit as hard as LUNA, trading 27.56% below its mark last Monday.
LFG is not trying to exit its bitcoin position, Do Kwon
LUNA, being one of the assets backing Terra’s algorithmic stablecoin(TerraUSD), affected the UST, which momentarily de-pegged from its dollar-backing over the weekend. $750 million worth of Bitcoin would be loaned to trading entities, while the remaining sum in UST will be used to bring normality to the market.
Do Kwon, the ecosystem’s founder, came out to justify the move following criticism and mockingremarks that LFG was trying to exit its position in the Bitcoin market. Kwon explainedthat the decision sought to boost the liquidity of the UST peg.
To learn more about Terra visit our Investing in Terra guide.
Instagram to introduce support for NFTs from different ecosystems
Elsewhere, social media giant Meta is set to bring NFT integration on its Instagram platform this week, as per a report from CoinDesk. Users who will leverage the pilot feature to exhibit their crypto art on the social network will not incur any charges.
Supported blockchain ecosystems are Ethereum, Polygon, Solana, and Flow, but there’s no confirmation all will be featured at the time of launch. The choice of these blockchains is rather obvious as the four have an already established footing in the NFT niche. The pilot program will be narrowed to a group of NFT enthusiasts in the US only.
Instagram plans to offer enabling wallet options like ConsenSys’ MetaMask through which users will display their collections. The NFT integration feature has been awaited following a teaser from Meta chief Mark Zuckerberg in March. Speaking at the South by Southwest conference in Austin, Zuckerberg divulged that the social media giant was exploring ways of onboarding NFTs on Instagram.
Instagram’s NFT support feature comes not long after news aggregation and discussion platform Reddit disclosed it was looking to bring NFT support.
Layer twos are potential-latent but are still in early development, The Block Research reports
The Ethereum network is arguably the core of the DeFiecosystem, and its native Ether token is the largest altcoin in the market. However, it is not without flaws and one of the biggest the blockchain has historically faced is network congestion. For a resolution came in layer twos, which offer users better-performing networks and much lower fees.
Now The Block Researchhas published a new report, commissioned by Polygon, specifically exploringthe current state of matters in L2 rollups (one of the many technologies employed in scaling) and the direction they could take in the future. The Block says that since most of these rollups were launched barely a few months ago, they still have low adoption in the number of users. The research also found metrics to indicate that as it’s only still early on in the market, these layer two rollups could only be at a point of inflection, meaning growth potential.
The report also highlighted that investors are flush in cash to put into layer two rollups. The firms developing these scaling solutions have already seen $1.3 billion in venture capital cash flow in the last one and a half years. The majority are appropriately set to enhance their operating protocols and also rally adoption by both users and developers.
As far as incentivization goes, The Block says the general consensus is that L2 rollups will launch their native tokens into the future, but there’s no indication of when that’s coming.
To learn more about Polygon visit our Investing in Polygonguide.
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