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 Community Votes To Burn 2.97 Billion Mistakenly Minted aUSD Stablecoins 3

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.

aUSD price chart. Source: CoinMarketCap

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.”

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.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

43 mins ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

4 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

7 hours ago

Step into BlockDAG’s Presale Frenzy This November: Secure a Massive 100% Bonus with BDAG100!

November is the perfect time for BlockDAG's huge presale. Use BDAG100 to double your purchase.…

9 hours ago

This website uses cookies.