Terra LFG

Create a dashboard that updates daily to display the Luna Foundation Guard yield reserve. As well, provide at least one visualization and one metric that you think is related to the yield reserve’s growth or depletion. Tweet this out with the hashtag #LFG and #bestanalyticalminds. The best 5 dashboards that go above and beyond to provide a) original and insightful analysis and b) visual appeal, great user experience, and flair, will receive a substantial grand prize. Full $150 payout requires a score of 7 or higher We will share these directly with Terraform Labs to receive feedback, and potentially, to do a followup project on the financial health and stability of the Luna Foundation Guard.

Introduction

In recent tweet on January, Terraform labs announced the formation of Luna Foundation Guard (LFG) with the main purpose of building reserves supporting the $UST peg amid volatile market conditions and allocate resources supporting the growth and development of the Terra ecosystem. The idea was to keep Terra ecosystem more comfortable and lead a plus to its stbalecoin UST.

Going in detail, LFG is a non-profit organisation that helps maintain the decentralised terrestrial ecosystem. The organisation was formed last month in Singapore with the goal of supporting the scalability of the TerraUSD (UST) currency. A decentralised algorithmic digital currency.

Terra announced in a tweet (https://twitter.com/terra_money/status/1496162889085902856?s=20&t=MRDy25C51Dz4XQR7niKg3A) that it raised $1 billion in private sales, one of the largest token sales ever recorded in the cryptocurrency world. "The sale was led by Jump Crypto and Three Arrows Capital, with participation from DeFiance Capital, Republic Capital, GSR, Tribe Capital and many others," the company wrote.

Unlike other centralised stablecoins such as Tether (USDT) or USDCoin (USDC), TerraUSD is not controlled or reserved by a central entity. This means that UST stabilises its price pegged to the US dollar using arbitrage-based algorithms.

In addition, the UST price maintains its anchor using a not-too-complicated economic supply and demand algorithm. According to Terra's website, "When demand for LUNA is high and supply is limited, the price of LUNA rises. When demand for LUNA is low and supply is too large, the price of LUNA falls. The protocol ensures that supply and demand for land are always in balance, leading to a stable price".

In this dashboard, we are gonna analyze which is the LUNA Foundation Guard yield reserve. As well, we will see how many of them provide from one currency or others.

Methodology

As said before, the goal of this dashbaord is to provide an update about the LFG yield reserve over time. To do that I used Flipside crypto data. On the one hand, the Terra daily_balances to see which tokens are inside the LFG wallet as well as Ethereum erc20_balances table to see how much of the reserve comes from UST wormhole from Ethereum network.

Results

The charts below show a global scheme about the LFG yield reserve. There are three main visualizations to take into account:

THe first one shows the Yield reserve balance in USD over time since the mid-February 2022
The second one shows this balance splitted by reception wallet label
The last one is about the LFG balance splitted by currency holdings

Conclusion

The LFG yield reserve had more than 2.5B USD in wallet. The starting point was formed by mostly LUNA and a little bit of UST. During the major part of Feburary month, the funds were LUNAs. Since March, the yield reserve were splitted between LUNA, UST, USDT and ETH. Currently, the reserve had a little bit more than 1B USD in total.

The chart below shows the LFG yield reserve balance over time since Feburary 15th. The balance changed from 2.5B to 1B USD approximattely.

This second chart displayed below shows from which labels the reserve funds were received. It can be seen how during the first days, the funds comes from Anchor yield reserve, then also from UST Wormhole on Ethereum network and others.