Acala Community Votes To Burn 2.97 Billion Mistakenly Minted aUSD Stablecoins
According to a new post by Acala Network co-founder Bette Chen, the community voted to burn $2.97 billion worth of Acala USD (aUSD) stablecoin.
Acala is a decentralized finance platform built on the Polkadot (DOT) ecosystem. Last week, the price of aUSD fell to $0.01 against its dollar rate after the community discovered that 3.022 billion aUSD was mistakenly minted through a misconfiguration of the iBTC/aUSD liquidity pool, which operates action on August 14.
The issue has since been fixed and wallet addresses that received the mistakenly minted aUSD were identified through on-chain tracing. Over 99% of all newly minted aUSD is still on Acala parachain. However, an estimated amount of $9.69 million was swapped from aUSD to DOT and sent to centralized exchanges.
Thirty-five accounts were also identified as having purchased more than 12.38 million aUSD which was mistakenly minted.
aUSD is over-collateralized by a variety of digital assets in the Polkadot and Kusama ecosystems, with a margin rate of 195% for every aUSD generated. However, the stablecoin’s current price of $0.84 suggests that the mistakenly minted coins are still disrupting the equilibrium of the system.
The developers have launched a bounty and a public appeal to return the malfunctioning assets to the Acala network.
“Many of the services on Acala have been disrupted. Therefore the team is trying to strike a balance between accuracy and speed. We still have a bit to go before services on Acala can be fully resumed, and as more traces on aUSD error mints are being completed, our community will have a clearer picture of formulating aUSD recovery proposals.”
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