Audit Reveals Efforts to Stabilize TerraUSD

Audit Overview

The Luna Foundation Guard (LFG) and Terraform Labs (TFL) initiated a comprehensive audit to scrutinize their financial interventions aimed at maintaining TerraUSD's (UST) dollar peg. This audit was a response to numerous allegations circulating on social media regarding the allocation of funds during this defensive period.

Financial Expenditures

The audit revealed significant expenditures by LFG, which deployed 80,081 Bitcoins and $49.8 million in stablecoins, amounting to approximately $2.8 billion at the time. These financial maneuvers were aimed at counteracting the depreciation pressures on UST. The findings corroborated LFG's previous disclosures on social media, particularly their communications on May 16.

Terraform Labs' Contributions

In addition to LFG's efforts, Terraform Labs contributed $613 million to the stabilization efforts. This substantial financial input highlights the coordinated effort between LFG and TFL to maintain the UST's dollar peg during the market upheaval.

Audit Conducted by JS Held

The audit was conducted by the U.S.-based consulting firm JS Held, ensuring a detailed and unbiased analysis of the financial activities undertaken. The audit's release provides clarity and transparency on the measures taken to support UST's stability during the specified period.

Conclusion

The audit underscores the extensive financial strategies employed by both LFG and TFL in their mission to defend TerraUSD's dollar peg. This transparency is crucial for maintaining investor confidence and addressing public concerns about fund management practices during financial crises.