- Binance Futures has announced LUNA delisting and automatic settlements on Perpetual Contracts.
- After temporarily suspending Terra tokens LUNA and UST withdrawals, Binance has updated the leverage and margin tiers.
- Do Kwon recently came up with a recovery plan for UST, proposing mass burn of the stablecoin to reestablish the $1 peg.
The world’s largest exchange has delisted LUNA from the Binance Futures platform. Leverage in USDT-Margined LUNA Perpetual Contracts has been reduced to 8x.
LUNA suffers delisting despite Do Kwon’s recovery efforts
Binance, the world’s largest cryptocurrency exchange, announced the delisting of LUNA futures on May 12, 2022, at 8:00 UTC. The exchange had temporarily suspended the withdrawals of Terraform Lab’s tokens LUNA and UST after the algorithmic stablecoin lost its peg.
Binance Futures will automatically settle Coin-Margined LUNA Perpetual contracts and advise users to close open positions before the delisting. The exchange has updated the margin tiers of the USDT-Margined LUNA contracts and reduced maximum leverage to 8x.
Do Kwon, the CEO of Terraform Labs, announced a recovery plan for LUNA and UST. Kwon proposed mass burning of UST to decrease the algorithmic stablecoin’s supply and stabilize its $1 peg. Despite the Luna Foundation Guard council’s recovery efforts, UST has reclaimed $0.60.
UST price posted 48.5% gains overnight as the LFG burned the algorithmic stablecoin at a fast pace to reestablish the peg. In a proposal to token holders, the council proposed a 1 billion UST burn, worth nearly $690 million. The massive burn of UST would pull the stablecoin out of circulation and reduce the selling pressure on TerraUSD.
The proposal reads:
Currently, the burning of UST is too slow to keep pace with the demand for excess UST to exit the system, which is hindered by the BasePool size. Eliminating a significant chunk of the excess UST supply at once will alleviate much of the peg pressure on UST.
LFG’s recovery plan and a drastic reduction in UST supply have failed to defend against the delisting of LUNA across exchanges like Binance Futures.