Hi everyone,
Here’s the next progress report on Prop 12226 “Reroute LUNC/USDC Position To Injective USDC”. After the successful rehearsal, we’ve now moved the first real tranche of the position: 50% of the multisig’s Terraport LP was withdrawn, and 9,500 USDC.n was roundtripped to Injective USDC along the same route as the rehearsal.
The tranche is complete, and the funds are back in the multisig as Injective USDC. Every step can be verified on chain with the links below.
TL;DR
- 50% of the multisig’s Terraport LUNC/USDC.n LP was withdrawn. That gave 10,479.41 USDC.n and 196,958,360.74 LUNC (after the 1.5% tax).
- 9,500 USDC.n went Terra Classic → Noble → Ethereum (Circle CCTP) → Injective (Circle CCTP) → Terra Classic.
- 9,499.999561 Injective USDC arrived back at the multisig. The only loss on the USDC side was 0.000439 USDC (a Skip fee), plus gas.
- The whole flow took about 45 minutes, from the DAO proposal’s execution to the funds arriving back.
- The remaining 979.41 USDC.n stays in the multisig as a buffer for a later tranche. The LUNC stays in the multisig for re-seeding the new pools.
Who holds the funds
As before, the funds are held by the DAO DAO multisig “Terra Classic Liquidity Initiative 12171”:
terra132qeqedz0yztuztj0rjav4rzlkashpsdxsmh64jpgp2ul0wdlkzquzvln6
Every on-chain action from the multisig goes through a DAO proposal that needs 7 of 10 signers. The multisig can’t hold funds on Ethereum or Injective, so for those legs the USDC passed through the same intermediary wallet as in the rehearsal. The funds were outside the multisig for about 45 minutes, and every movement is linked below.
Step 1: Withdraw and bridge to Ethereum (DAO proposal A58)
DAO proposal A58 “Migration Pass 1: Withdraw 50% Terraport LP and bridge 9,500 USDC.n to Ethereum” passed 7 yes / 0 no / 0 abstain and was executed on 2026-09-27. This time the withdrawal and the bridge transfer were combined in a single proposal.
Why a fixed 9,500 USDC.n instead of the whole payout: voting takes several days, and the exact USDC.n amount from the withdrawal depends on the pool price at execution. If the proposal had tried to send more USDC.n than the withdrawal paid out, it would have failed and closed. So we sent a fixed amount below the expected payout, and the difference stays in the multisig.
Execution tx: 90B6BCDD…0AA0C6
| Pool | LP burned | USDC.n received | LUNC gross | LUNC tax (1.5%) | LUNC received (after tax) |
|---|---|---|---|---|---|
| Terraport | 1,439,847.87 | 10,479.410633 | 199,957,726.64 | 2,999,365.90 | 196,958,360.74 |
| When (UTC) | Chain | What happened | Tx |
|---|---|---|---|
| 13:05:20 | Terra Classic | A58 executed: LP withdrawn, multisig sends 9,500 USDC.n to Noble | 90B6BCDD…0AA0C6 |
| 13:05:48 | Noble | USDC received and burned through CCTP for Ethereum | B6E7416B…B38F |
| 13:06:59 | Ethereum | 9,500 USDC minted to the intermediary wallet on Ethereum | 0xcb40b50b…9ace4 |
No bridge fee was charged. As in the rehearsal, a public relayer minted on Ethereum about a minute after the Noble burn.
Step 2: Ethereum → Injective → Terra Classic (via Skip)
From Ethereum we used Skip again to bring the USDC back to the multisig as Injective USDC, with the multisig address as the final receiver.
| When (UTC) | Chain | What happened | Tx |
|---|---|---|---|
| 13:30:47 | Ethereum | 9,500 USDC sent into the route. Skip took a 0.000439 USDC fee, and 9,499.999561 USDC was burned through CCTP for Injective | 0x4e30479c…02f5 |
| ~13:49 | Injective | Circle attested (after about 19 min of Ethereum finality) and 9,499.999561 USDC was minted to the intermediary wallet on Injective | |
| 13:50:34 | Injective | 9,499.999561 USDC sent over IBC to the multisig on Terra Classic | EA0072A2…84A3 |
| 13:50:42 | Terra Classic | 9,499.999561 Injective USDC arrived at the multisig | BC828CD9…0424 |
On Terra Classic, the Injective USDC has the denom:
ibc/F52112392095A6D6D1B17EF1FE19BE0B39B2A79B8A2B2F55CD721FC7DBF5081F
(IBC path: transfer/channel-143/erc20:0xa00C59fF5a080D2b954d0c75e46E22a0c371235a)
Costs
| Item | Amount |
|---|---|
| Terra Classic tax on withdrawn LUNC | 2,999,365.90 LUNC |
| Skip fee | 0.000439 USDC |
| Gas: Terra Classic, Ethereum, Injective | ~69.83 LUNC, ~0.00066 ETH, 0.00035 INJ |
| USDC lost in bridging | 0.000439 USDC out of 9,500 (about 0.000005%) |
The Skip fee was about the same as in the rehearsal (0.00045 USDC), even though the amount was more than 60× larger. So it doesn’t seem to scale with the amount.
Multisig balances now
| Asset | Amount |
|---|---|
| Injective USDC | 9,649.926037 (9,499.999561 from this tranche + 149.926476 from the rehearsal) |
| USDC.n | 979.410633 (buffer kept for a later tranche) |
| LUNC | 199,681,970.32 |
Anyone can check these with the multisig address.
What we learned
- The route scales. The same route that moved 150 USDC in the rehearsal moved 9,500 USDC with no problems and essentially no loss.
- Withdraw and bridge can go in one proposal. Combining both steps saved a full voting round. The fixed bridge amount with a buffer protects the proposal from failing if the price moves during the vote.
- Timing is dominated by Ethereum finality. About 19 of the 45 minutes were Circle waiting for Ethereum finality before attesting on the Injective leg.
- The 1.5% LUNC tax applies again. It cost 3.0M LUNC on this tranche, and we’ll keep accounting for it in the next ones.
Next steps
- Use the Injective USDC and LUNC in the multisig to set up and seed the new LUNC/USDC (Injective) pools through DAO proposals.
- Continue the migration with the next tranches: the remaining 50% of the Terraport LP, plus the Garuda and Terraswap positions, along the same route. The 979.41 USDC.n buffer will be bridged together with a later tranche.
We’ll keep posting updates here as each step goes through. Questions and feedback are welcome!