● The Acala network rectifies the aUSD stablecoin hack issue.
● Due to the hack, 99% of the incorrectly minted coins remain on Acala parachain.
● The price of the stablecoin also submerged by 99% in the past day.
Acala Network releases updates on the recent attack on Polkadot’s native stablecoin aUSD. The Acala team tweeted that they have identified the issue as a “misconfiguration of the iBTC/aUSD liquidity pool, that resulted in error mints of a significant amount of aUSD.”
Following the hack, price of the aUSD plunged in the past day. The stablecoin depegged, with a nearly 99% dip, when the hackers exploited a bug on its iBTC-aUSD liquidity pool. Reportedly, 1.3 billion aUSD tokens are claimed to be still in the wallet of the hacker.
The Acala team informed the Twitter audience that the misconfiguration of the iBTC-aUSD liquidity pool has since been “rectified and wallet addresses that received the erroneously minted aUSD have been identified.” To resolve the issue, the network used on-chain activity tracing concerned with the addresses.
Based on preliminary on-chain tracing, 99%+ of the errorneously minted aUSD remain on Acala parachain with a small proportion of errorneously minted aUSD being swapped for ACA and other tokens on Acala parachain.
After the team found the issue, they disabled the transfer of the erroneously minted coins.
To expand, the price of the stablecoin drained off from $1.0215 to $0.0531, in the past day, which is a steep decline of 99%. However, as of now, aUSD trades at $0.8985, and the price went to a high of $0.8996. The past 24 hours of trading show that the coin has surged by 9.3%, at the present time.
Earlier, the Acala team tweeted that they had noticed a “configuration issue of the Honzon protocol” that affects aUSD. Also, the team said that they had started investigating and mitigating issues at the moment.