Terraform Labs (TFL) and Luna Foundation Guard (LFG) purchased AVAX tokens totaling $200 million.
TFL exchanged its own LUNA token for AVAX tokens. The transaction amounted to $100 million.
In turn, LFG, the nonprofit organization authorized to build reserves for the Terra UST algorithmic stablecoin, used its own UST assets to purchase an additional $100 million worth of AVAX tokens from the Avalanche Foundation.
The purchases are intended to bolster Terra UST’s steblecoin reserves.
Do Kwon, founder of Terraform Labs, said AVAX was chosen for UST reserves because of the steady growth of Avalanche’s blockchain ecosystem, as well as the absolute loyalty of its users.