Acala Makes Proposal To Burn 1.28 Billion aUSD After Hacking Investigation
The stablecoin Acala (aUSD) of the Polkadot ecosystem was hacked over the weekend, and the damage amounted to $1.2 billion. The team has “paused” operations through an urgent administrative recommendation to investigate the hack.
Specifically, on August 15, the team proposed to burn 1.288 billion aUSD after the Acala Council published its on-chain report.
Initially, Acala reported the issue to users around 2 a.m UTC on August 14, saying it was trying to “minimize the damage.” At 12 p.m on the same day, the team revealed the attack’s cause, confirming that more than 99% “aUSD is still falsely minted on the Acala parachain.”
Regarding the potential impact on the Polkadot ecosystem as a whole, Victor Young, Founder and Chief Architect at Analog commented:
“I still believe that Polkadot’s infrastructure is secure by design… the same cannot be said about Acala Network, an application-specific chain customized to power liquidity, economic activity, and stable coin utility on the platform.
In my view, we’ll continue to see more of these attacks because many dApp developers don’t put in the legwork when defining their code’s security properties. Even if the smart contract is audited, the code may not be foolproof.”
Acala Network is committed to this community governance proposal that will determine the resolution of the problem. Currently, it has a Governance Council consisting of 5 addresses.
According to the Notion roadmap, “comprehensive democracy” is still in the “planning” stage. Roadmap Phase 3 is almost completed.
As a result, according to the current governance mechanism, the Acala Council appears to hold disproportionate network control. While this may not be ideal given the protocol’s decentralized structure, it may help Acala with resolution management and “to resolve the error mint of aUSD & restore aUSD peg.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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Acala Makes Proposal To Burn 1.28 Billion aUSD After Hacking Investigation
The stablecoin Acala (aUSD) of the Polkadot ecosystem was hacked over the weekend, and the damage amounted to $1.2 billion. The team has “paused” operations through an urgent administrative recommendation to investigate the hack.
Specifically, on August 15, the team proposed to burn 1.288 billion aUSD after the Acala Council published its on-chain report.
Initially, Acala reported the issue to users around 2 a.m UTC on August 14, saying it was trying to “minimize the damage.” At 12 p.m on the same day, the team revealed the attack’s cause, confirming that more than 99% “aUSD is still falsely minted on the Acala parachain.”
Regarding the potential impact on the Polkadot ecosystem as a whole, Victor Young, Founder and Chief Architect at Analog commented:
“I still believe that Polkadot’s infrastructure is secure by design… the same cannot be said about Acala Network, an application-specific chain customized to power liquidity, economic activity, and stable coin utility on the platform.
In my view, we’ll continue to see more of these attacks because many dApp developers don’t put in the legwork when defining their code’s security properties. Even if the smart contract is audited, the code may not be foolproof.”
Acala Network is committed to this community governance proposal that will determine the resolution of the problem. Currently, it has a Governance Council consisting of 5 addresses.
According to the Notion roadmap, “comprehensive democracy” is still in the “planning” stage. Roadmap Phase 3 is almost completed.
As a result, according to the current governance mechanism, the Acala Council appears to hold disproportionate network control. While this may not be ideal given the protocol’s decentralized structure, it may help Acala with resolution management and “to resolve the error mint of aUSD & restore aUSD peg.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
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