- Acala Network has been exploited for at least $1.2 billion worth of Acala Dollar (aUSD).
- aUSD has been de-pegged from $1 and is now only worth $0.0098.
- People purported the incident as a “Do Kwon” moment.
Acala Network, a decentralized finance (DeFi) protocol based on Polkadot, has been exploited for at least $1.2 billion worth of Acala Dollar (aUSD). The cause of the hack was due to a bug in the iBTC/aUSD pool.
Acala confirmed the attack, explaining that the culprit is a “configuration issue of the Honzon protocol.” The team also voted to halt operations while they sort out the issue.
— 0xTaysama – IYKYK (@0xTaylor_) August 14, 2022
In light of the hack, Acala’s native token crashed in price by at least 10% from $0.31 to $0.28. What is worse, aUSD’s price has been de-pegged from $1, and is now worth as low as $0.0098, according to CoinGecko.
The news is now all over social media, with some reminiscing about what happened to Terra and TerraUSD (UST). Someone even claimed Acala is having a “Do Kwon” moment.
— Pandoshi (@Pandoshi69) August 14, 2022
At the moment, there has not been enough evidence to fuel suspicions of Acala performing a scheme similar to Terraform Labs. At the time of writing, Acala has not provided any more explanation apart from the tweet that says they are investigating and mitigating the issue.
For those unfamiliar with the Terra reference, there has been an incident earlier this year where UST, an algorithmic stablecoin issued by Terraform Labs, has been de-pegged from $1. It has escalated to people losing billions of dollars’ worth of investment in Terra (LUNA) and UST.
Meanwhile, Polkadot has issued no statement yet, although its governance team is not affiliated with Acala.