Monday, November 28, 2022
 

Acala Burns Over 1.2  Billion aUSD To Restore Dollar Peg

  • A total of over 1.2 billion aUSD tokens have been burnt by the Acala community.
  • This is to restore the value of aUSD, that de-pegged from the dollar and fell to $0.009954.
  • Attempts by the attacker to move erroneously minted aUSD were unsuccessful.

Nearly 1.3 billion aUSD tokens have been burned by the Acala community in order to realign the stablecoin’s value with the U.S. dollar. An attack on the Polkadot DeFi hub led to the erroneous creation of these tokens.

According to reports, the hacker exploited a vulnerability in the Honzon protocol, which is accountable for the aUSD token. As a consequence, approximately 1,292,860,248 aUSD tokens were incorrectly minted.

The stablecoin’s peg to $1 was lost due to an increase in supply, and aUSD plummeted considerably. However, according to CoinMarketCap data, the stablecoin almost recovered its peg only to lose it again after plunging by 99%.

The price of one aUSD was $0.009954 as of Monday at 11:46 PM Eastern Time, which is considerably lower than the required $1 price level.

“The recently approved community government referendum has now been executed. A total of 1,292,860,248 erroneously minted aUSD has been returned to the Honzon protocol and burned,” Acala announced on Twitter at 10:06 PM ET, Monday.

Because Acala had disabled its exchange and transfer features, the DeFi platform confirmed that no assets were withdrawn from the Acala parachain. As a result, attackers were unable to get off with any funds.

Once the aUSD tokens were identified and burned, the attackers’ wallet included just a handful of other tokens that had been exchanged from aUSD in an unsuccessful withdrawal attempt.

According to the Acala team, follow-up reports are en route, and once these are released, the community can”collectively formulate proposals following each trace report to resolve the error minting of aUSD, the state of liquidity pools, and then gradually resume paused network operations.”

  • A total of over 1.2 billion aUSD tokens have been burnt by the Acala community.
  • This is to restore the value of aUSD, that de-pegged from the dollar and fell to $0.009954.
  • Attempts by the attacker to move erroneously minted aUSD were unsuccessful.

Nearly 1.3 billion aUSD tokens have been burned by the Acala community in order to realign the stablecoin’s value with the U.S. dollar. An attack on the Polkadot DeFi hub led to the erroneous creation of these tokens.

According to reports, the hacker exploited a vulnerability in the Honzon protocol, which is accountable for the aUSD token. As a consequence, approximately 1,292,860,248 aUSD tokens were incorrectly minted.

The stablecoin’s peg to $1 was lost due to an increase in supply, and aUSD plummeted considerably. However, according to CoinMarketCap data, the stablecoin almost recovered its peg only to lose it again after plunging by 99%.

The price of one aUSD was $0.009954 as of Monday at 11:46 PM Eastern Time, which is considerably lower than the required $1 price level.

“The recently approved community government referendum has now been executed. A total of 1,292,860,248 erroneously minted aUSD has been returned to the Honzon protocol and burned,” Acala announced on Twitter at 10:06 PM ET, Monday.

Because Acala had disabled its exchange and transfer features, the DeFi platform confirmed that no assets were withdrawn from the Acala parachain. As a result, attackers were unable to get off with any funds.

Once the aUSD tokens were identified and burned, the attackers’ wallet included just a handful of other tokens that had been exchanged from aUSD in an unsuccessful withdrawal attempt.

According to the Acala team, follow-up reports are en route, and once these are released, the community can”collectively formulate proposals following each trace report to resolve the error minting of aUSD, the state of liquidity pools, and then gradually resume paused network operations.”

 

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