DeFi

Acala Network’s Phase 1 Vote To Resume Operations Gets Passed

Acala Network's Phase 1 Vote To Resume Operations Gets Passed

Acala Network’s Phase 1 vote to resume operations got passed and its LPs can withdraw liquidity from pools.

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Acala previously said that the Acala network will be launched in stages, with phase 1 allowing LPs to withdraw liquidity from pools, phase 2 enabling remaining activities except for oracles, and phase 3 enabling oracles.

Acala is a decentralized financial Polkadot parachain that provides cross-chain capability to the aUSD ecosystem.

A misconfiguration issue involving a new iBTC/aUSD liquidity pool in August resulted in the erroneous minting of more than 3 billion aUSD. The smart contract misconfiguration allowed Acala liquidity providers (LPs) to receive the mistake mints and continuously supply additional liquidity in order to get more aUSD, resulting in the stablecoin being depegged.

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Next comes phase 2, which enables all remaining operations except oracles. The Acala Foundation said it would continue to work with legal, law enforcement, and other partners to retrieve the remaining funds.

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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.