DeFi Hub Of Polkadot Experiences Serious Hack

Following a significant security compromise, Acala, the decentralized hub of the Polkadot network, passed an urgent resolution to halt operations.

DeFi Hub Of Polkadot Experiences Serious Hack

The project team is presently exploring and resolving the problem.

The AUSD stablecoin lost its peg as a result of the hack, falling to an all-time low of $0.5713.

Even though the stablecoin has recovered around 44% of its value, there is debate about whether it will eventually degenerate into a catastrophe akin to Terra.

Image by coinmarketcap.com

Early in February, Acala introduced its first native stablecoin. It acts as the Polkadot and Kusama ecosystem’s default stablecoin. The AUSD cryptocurrency, which bills itself as the multi-chain variant of the Ethereum-based Dai (DAI) stablecoin, is backed by a variety of collateral reserve assets.

It coexists with the government token ACA – Polkadot

DeFi Hub Of Polkadot Experiences Serious Hack

The Acala team had previously announced the opening of a $250 million ecosystem fund for the AUSD stablecoin back in March, before the sky-high TerraUSD (UST) crashed. The ACA governance token’s price increased by more than 30% as a result of the announcement.

The AUSD stablecoin differs from the failed algorithmically-baked UST stablecoin in that it is overcollateralized.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

CoinCu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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