Misconfiguration of the network’s iBTC/aUSD liquidity pool enabled hackers to produce 1.28 billion stablecoins, reducing its value. Hackers exploited a newly installed liquidity pool weakness to make 1.28 billion tokens.
The site burned the hacker-created stablecoin supply on Tuesday, putting its price back near to $1.
The network suspended operations following an emergency vote on governance due to the aUSD drop. As recompense, community residents agreed Monday to burn 1,2 billion aUSD. The aUSD is trading at $0.91 following the burn.
The site burned the hacker-created stablecoin supply on Tuesday, putting its price back near to $1.
A tiny quantity of exploited aUSD was exchanged for ACA, Acala’s native currency, and other tokens. The Acala parachain has been trimmed.
Acala network is doing “further tracing reports” to discover aUSD coins that were traded for other tokens or added to liquidity pools. ACA fell 0.18 percent in 24 hours. After the burn-off, ACA was trading at $0.00051.
AUSD/Acala
Acala is a layer 1 smart contract framework for the aUSD ecosystem. Before the hack, aUSD had a soft bid to the US dollar. After the assault, aUSD fell to 0.009, as seen below.
After a governance decision, the network suspended trading due to aUSD’s severe drop. As recompense, community residents agreed Monday to burn 1,2 billion aUSD. The aUSD is trading at $0.91 following the burn.
99% of the exploited aUSD reportedly stayed in Acala, while a minor amount was traded for ACA, Acala’s native currency, and other tokens. This minor amount has been removed from the Acala parachain.
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