Acala Dollar (aUSD) burned over 1.29 billion aUSD minted in its liquidity pool and traded higher on the day at US$0.91 at 5 p.m. Hong Kong time on Tuesday, up from a low of nearly zero on Monday.
See related article: Polkadot-based stablecoin Acala Dollar depegs after a breach
- Over the weekend, exploiters breached a bug in the platform’s liquidity pool to mint 130 million stablecoins, resulting in a severe fund pool imbalance and pushing aUSD to lose its peg to the U.S. dollar.
- Acala held a community vote on Monday proposing to burn nearly 1.3 billion coins to offset the breach. Acala Dollar is a stablecoin issued by Polkadot-based decentralized finance project Acala Network.
- Acala also continues to identify and report wrongly minted aUSD that has been swapped with other tokens or added to liquidity pools.
- Sixteen wallets executed these outflow transactions, said Acala Network in its Twitter post.
- Acala did not reveal how much it lost but crypto analysts on Twitter estimated Acala’s loss at US$1.6 million.
See related article: Polkadot DeFi hub Acala wins first Polkadot auction after collecting over 32M DOT