DOT Acala fall By 70percent After Hackers Issued 1.2 Billion AUSD

14 Aug 2022 By: Sudeep Saxena
DOT Acala fall By 70

Hackers, who in the past few months have been successful in breaking 

The security of many other protocols, have altered yet another DeFi protocol. Alcala from polcadot is the victim this time.

Acala is still in danger as AUSD declines to its lowest point.

The aUSD ecosystem is hosted by Polkadot's decentralised finance network, which announced via their official Twitter account that operations have been suspended due to "configuration difficulties" on the network.

It seems that the hackers sent out around 1.2 billion aUSD after breaking into the network. The asset fell by 70% right away as a result. Since market sentiment is still overwhelmingly pessimistic at the time of this report, the USD is still nursing losses.

The USD's slide happens shortly after it hit its highest point since June 30th, when it hit $1.03. The asset's value has since dropped to $0.88. Until the compromise is settled, the asset and its platform are unsure of what will happen next.

AUSD, the native stablecoin of the polkadot ecosystem, is a multi-collateral, decentralised stablecoin backed by crypto. A USD is issued through the Collateralized Debt Positions (CDPs) system and went into circulation in February 2022. The USD value is used to peg the stablecoin. Thus, 1 aUSD is equivalent to 1 USD.

It's possible that DeFi protocol hacks won't end soon.

Numerous additional DeFi protocols have been under attack this year, similar to Acala. Hackers attacked CurveFinance at the beginning of August. Later it was discovered that the DeFi protocol had lost almost $570,000. Similar to this, a DeFi lending and credit system called Fortress said in March that $3 million had been stolen as hackers attacked the network.

Even if the hacks constitute a setback for the already closely watched platforms, they are nothing in comparison to the hack from the previous year. Over 12 DeFi platforms were compromised back in 2021, costing the world over $11 billion in total losses. Although networks admit to increasing security after every attack, it's still unclear where the market will end up in the long run.