Earlier today, Polkadot DeFi’s hub, Acala, had exploited its stable currency aUSD for about 1.2 billion aUSD. It has since addressed the issue on its Twitter account, explaining that the issue had been identified as a misconfiguration of the IBTC/aUSD liquidity pool launched earlier today.

No repeat of UST Hack

The hack earlier today had sent the crypto twitter community into a frenzy with many speculating about a repeat of the UST scenario that occurred a few months ago. However, it seems that it is not even remotely like the collapse of the algorithmic stable currency as it has too much collateral.

Acala explained in her statement on twitter that the mis-minted aUSD that immediately depegged the stable coin to less than 70% of its original value remains on its parachain and from the statement it appears that the situation will be resolved in no time. saved.

Pending the collective board decision of the Acala community on how to fix the minting error, they have incorrectly minted a USD that remains on Acala parachain along with these swapped Acala parachain native tokens have disabled transfer. The team said this in a statement.

Some other features on the network have also been disabled pending a board vote to avoid liquidation. Polkadot’s native token is showing signs of recovery.

How is the Acala dollar doing now?

Per CoinmarketCap, aUSD is just a few cents away from regaining its peg and is currently trading at $0.9166 at the time of writing. The stablecoin was launched early this year and functions with the support of a multi-collateral mechanism. It can be minted with coins such as DOT and LCDOT as collateral.

The team also asked that people and whitehats who received the mis-minted Stablecoin return it to an address it published, and also announced that any address that received the stablecoin from the hack is known.

Abigal .V. is a cryptocurrency writer with over 4 years of writing experience. She focuses on news writing and is adept at finding current topics. She is a fan of cryptocurrencies and NFTs.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.



This post Not another UST; Acala Team Share Positive Update on USD Hack

was published first on https://coingape.com/no-new-ust-acala-shares-update-ausd-hack/

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