Acala Network Restarts Operations After August Crash
The Acala network said today that it intends to restart operations following an August minting mistake issue involving its aUSD stablecoin.
In August, a misconfiguration problem with a new iBTC/aUSD liquidity pool resulted in the erroneous minting of more than 3 billion aUSD. The misconfiguration of the smart contract caused Acala liquidity providers (LPs) to get the incorrect mints and constantly offer further liquidity in order to obtain more aUSD, resulting in the stablecoin being depegged.
Despite the fact that a substantial number of aUSD was moved to other Polkadot ecosystem chains and CEXs, the Acala team certified that 99% of the erroneous mints stayed inside the Acala Network.
Following a series of critical governance votes, several Acala operations were put on hold while the team explored the problem. Following community discussions, Acala recovered 2.97 billion aUSD mistake mints from 16 identified addresses and burnt the tokens.
In today’s announcement, Acala Network said:
“After the execution of community governance votes and publication of trace reports, all liquidity pools on Acala are re-capitalized and rebalanced.”
After the Acala Foundation borrowed aUSD with its own cash to burn and accomplish re-collateralization, all aUSD in circulation are fully collateralized. As a result, the network may resume normal operations.
The Acala Foundation stated that it will continue to collaborate with legal, law enforcement, and other partners to recover the remaining monies. A bonus of up to 5% is available to any party that returns at least 95% of cash transported outside of Acala Network. It said that no further action will be taken against such locations.
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 us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu
Author
DeFi
Acala Network Restarts Operations After August Crash
The Acala network said today that it intends to restart operations following an August minting mistake issue involving its aUSD stablecoin.
In August, a misconfiguration problem with a new iBTC/aUSD liquidity pool resulted in the erroneous minting of more than 3 billion aUSD. The misconfiguration of the smart contract caused Acala liquidity providers (LPs) to get the incorrect mints and constantly offer further liquidity in order to obtain more aUSD, resulting in the stablecoin being depegged.
Despite the fact that a substantial number of aUSD was moved to other Polkadot ecosystem chains and CEXs, the Acala team certified that 99% of the erroneous mints stayed inside the Acala Network.
Following a series of critical governance votes, several Acala operations were put on hold while the team explored the problem. Following community discussions, Acala recovered 2.97 billion aUSD mistake mints from 16 identified addresses and burnt the tokens.
In today’s announcement, Acala Network said:
“After the execution of community governance votes and publication of trace reports, all liquidity pools on Acala are re-capitalized and rebalanced.”
After the Acala Foundation borrowed aUSD with its own cash to burn and accomplish re-collateralization, all aUSD in circulation are fully collateralized. As a result, the network may resume normal operations.
The Acala Foundation stated that it will continue to collaborate with legal, law enforcement, and other partners to recover the remaining monies. A bonus of up to 5% is available to any party that returns at least 95% of cash transported outside of Acala Network. It said that no further action will be taken against such locations.
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 us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu
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