Not Another UST; Acala Team Shares Positive Update On aUSD Hack

Earlier immediately, Polkadot DeFi’s hub Acala had its steady coin aUSD, exploited for about 1.2 billion aUSD. It has since addressed the problem on its twitter account explaining that the issue had been recognized to be a misconfiguration of the IBTC/aUSD liquidity pool launched earlier immediately.

No repetition of UST Hack

The hack had thrown crypto twitter group right into a frenzy earlier immediately with many speculating a replay of the UST state of affairs that occurred a number of months again. It nonetheless appears it’s nothing remotely much like the collapse of the algorithmic steady coin as it’s over-collateralized.

Acala defined in its assertion on twitter that the erroneously minted aUSD which instantly depegged the steady coin to lower than 70% of its authentic worth stays on its parachain and from the assertion, it appears the scenario can be salvaged very quickly.

Pending Acala group collective governance determination on decision of the error minting, these erroneously minted aUSD remaining on Acala parachain together with these swapped Acala parachain native tokens have been switch disabled. The staff stated in its assertion.

Another features on the community have additionally been disabled pending governance vote to keep away from liquidation. The Polkadot native token has proven indicators of restoration.

How is the Acala greenback faring now?

Per CoinmarketCap, aUSD is only a few cents away from reclaiming its peg and at present trades at $0.9166 as on the time of writing. The stablecoin was launched early this yr and it features with the backing of a multi-collateral mechanism. It may be minted utilizing cash like DOT and LCDOT as collateral.

The staff has additionally requested that folks and whitehats who acquired the erroneously minted Stablecoin return it to some handle that it revealed, additionally saying that each handle that acquired the steady coin from the hack are recognized.

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