Following a significant security compromise, Acala, the decentralized hub of the Polkadot network, passed an urgent resolution to halt operations.
The project team is presently exploring and resolving the problem.
The AUSD stablecoin lost its peg as a result of the hack, falling to an all-time low of $0.5713.
Even though the stablecoin has recovered around 44% of its value, there is debate about whether it will eventually degenerate into a catastrophe akin to Terra.
Early in February, Acala introduced its first native stablecoin. It acts as the Polkadot and Kusama ecosystem’s default stablecoin. The AUSD cryptocurrency, which bills itself as the multi-chain variant of the Ethereum-based Dai (DAI) stablecoin, is backed by a variety of collateral reserve assets.
It coexists with the government token ACA – Polkadot
The Acala team had previously announced the opening of a $250 million ecosystem fund for the AUSD stablecoin back in March, before the sky-high TerraUSD (UST) crashed. The ACA governance token’s price increased by more than 30% as a result of the announcement.
The AUSD stablecoin differs from the failed algorithmically-baked UST stablecoin in that it is overcollateralized.
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