Acala Stablecoin Reaches Dollar Peg After Burning AUSD 1.29 Billion

Dot pattern-based DeFi Platform Acala native stablecoins The aUSD returns to its dollar peg after the community vote to destroy 1.29 billion aUSD.

These tokens were minted following an exploit of a “misconfiguration” in one of Acala’s liquidity pools. After attackers exploited the flaw, the stablecoin’s value plummeted as a result of mass minting.

The coin broke up and fell to a new all-time low of $0.0054 on Aug. 14.

However, the stablecoin has since gained 10,158% in the past 24 hours and is now trading at $0.92, according to the data coingecko.

The restoration comes amid a new burn program voted on by the Acala community yesterday.

That Suggestion attempted to burn the 1.29 billion aUSD tokens held by 16 wallet addresses involved in Acala’s newly launched iBTC/aUSD liquidity pool smart contract exploit.

About 95% of voters unanimously approved the proposal, and a meager 5% opposed it. After its adoption, the proposal was carried out earlier today.

“The recently passed community governance referendum has now been conducted,” tweeted Acala at 2am UTC. “1,292,860,248 erroneously minted aUSD were returned to the Honzon Protocol and burned.”

The fire event helped the USD regain its dollar peg quickly.

The recently passed community governance referendum has now passed.

A total of 1,292,860,248 erroneously minted aUSD were returned to the Honzon Protocol and burned.

Details in the thread below ⤵

— Acala (@AcalaNetwork) August 16, 2022

Corresponding a trace reportalmost 99% of the erroneously minted aUSD remaining on Acala was burned from exploiters’ wallets.

The remaining 1% were traded or moved to other parachains. The team is still recovering them.

4/9
Over 99% of erroneously minted aUSD remains on the Acala parachain, with a small portion carried over from Acala. To curb the error that shaped a USD, urgent government votes were passed to pause the Honzon protocol, xcm, EVM, non-ACA token transfers, Oracle range and LDOT instant redemption

— Acala (@AcalaNetwork) August 15, 2022

Acala Parachain also remains paused.

Pause in the Acala network divides the community

Despite the withdrawal of the mass minting of a USD, many in the Acala community have expressed concerns about the project’s ability to halt the parachain amidst the chaos.

A parachain is an independent blockchain based on Polkadot that is interoperable with every other parachain on the network.

“I realize this is done with good intentions, but this is a slippery slope,” a Twitter user expressing concerns about Acala’s activities tweeted.

“I agree that fixing the problem that is hurting regular users and not letting the hackers get away with it is a good thing. That being said, I also don’t want to see any suggestion of taking my money or another regular user’s rights by voting a crowd. said a user on Acala’s Discord.

decrypt has reached out to Acala for comments on “centralization” concerns.

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