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Top Cryptocurrency News: Acala Community Votes to Burn 2.96B of Erroneously Minted aUSD Stablecoin

23-Aug-2022 By: Rohit Tripathi
Top Cryptocurrency N

According to a blog post by Acala Network co-founder Bette Chen, 

The community has voted to burn 2.96 billion worth of Acala USD (aUSD) stablecoin.

Acala is a blockchain-based decentralized finance platform built on the Polkadot (DOT) eco system. The previous week, the price of aUSD plunged to less than $0.01 from its dollar peg when it was revealed that 3.022 billion aUSD had been erroneously minted due to a misconfiguration of the iBTC/aUSD liquidity pool, which went online on August 14.

The misconfiguration has subsequently been rectified, and wallet addresses that received the erroneously minted aUSD have been discovered via on-chain tracking. Over 99% of newly minted aUSD is still on the Acala parachain. However, an estimated $9.69 million in funds were converted from aUSD to DOT and transferred to centralized exchanges.

Furthermore, 35 accounts were identified as having received roughly 12.38 million erroneously minted aUSD.

aUSD is over-collateralized by a range of digital assets in the Polkadot and Kusama ecosystems, with a deposit rate of 195% every aUSD minted. Nonetheless, the stablecoin's current price of $0.84 suggests that the erroneously minted coins continue to disrupt the system's equilibrium. Developers have made incentives and public appeals for the glitched assets to be restored to the Acala network.

Chen also warned that “numerous Acala services had been affected. As a result, the team is attempting to achieve a balance between speed and accuracy. We still have some work to do before Acala services can be completely restarted, and when more traces on aUSD error mints are completed, our community will have a clearer understanding of formulating aUSD recovery plans."

Read also: Top Cryptocurrency News: South Korean Financial Titans Want to Create Virtual Assets Exchange in 2023: Report

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