2022 is a year of collapse for stablecoins, as countless U.S. dollar-pegged cryptoassets decouple from the value of the U.S. dollar this year. The Polkadot-based stablecoin Alpaca USD (AUSD) fell below 1 cent in value on Aug. 14, only to bounce back to the $0.95 region a few hours later. The Acala protocol was compromised and attackers managed to mint $1.2 billion, the report said.
Polkadot’s AUSD stablecoin is well below $1 parity
Apart from USDT, USDC, DAI, and a few other stablecoins have had a bad year in maintaining their dollar value. Decoupling of terra usd (UST) (now known as USTC) leads to the entire Terra ecosystem implosion Over $40 billion evaporated from the crypto economy. After that event, stablecoins such as Waves’ neutrino dollar (USDN), Abracadabra’s Magic Internet Currency (MIM), and Tron’s USDD fell below the $1 mark.
Just now: Hackers printed 1.2 billion $AUD By exploiting on the Acala network.
— Watcher.Guru (@WatcherGuru) August 14, 2022
And Terra’s USTC Never re-pegged to $1, USDN, MIM, and USDD will all be exchanged for $0.99 per coin on August 14, 2022.However, on the same day, the Polkadot-based stablecoin Alpaca Dollar (AUSD) Lost the hook. Data from coinmarketcap.com showed an all-time low of around $0.006383 per unit on Sunday. At the time of writing this article at 3:15pm EST, the price of AUSD had rallied back into the $0.95 range, but then quickly fell to $0.01165.
Polkadot’s Acala Network tweeted about the issue ahead of the big swing in AUSD’s value. “We are aware of a configuration issue with the Honzon protocol affecting AUSD,” Acala Network’s official Twitter page wrote“We are passing an emergency vote to suspend Acala operations while we investigate and mitigate this issue. We will report when we resume normal network operations,” the team added.
Binance CEO Changpeng Zhao (CZ) also tweet About the Australian dollar. CZ wrote:
The ACALA protocol is currently broken.Apparently there is a bug in the iBTC/AUSD pool, and [the] The attackers’ wallets now hold over A$1 billion. We are monitoring. (AUSD is not listed on Binance).
Acala Protocol Says ‘Configuration Mistake’ Causes ‘Mass AUSD Misminting’
a series of other Report Say a hacker managed to mint A$1.2 billion, which eventually led to the decoupling of the stablecoin. Hours later, Acala confirmed that there was a bug that caused a large amount of AUSD to be minted. “We have identified the issue as a misconfiguration of the iBTC/AUSD liquidity pool (which went live earlier today), causing a large amount of AUSD to go wrong,” the team said. Say Sunday.
Acala stated that “misconfigurations have been corrected,” and the team managed to identify wallets that received incorrectly minted AUSD tokens. Acala made the announcement at 7:59AM EST, noting that an on-chain investigation is underway.
“Waiting for a decision on the collective governance of the Acala community [the] A solution to the wrongly minted aUSD remaining on the Acala parachain, and these swapped Acala parachain native tokens have been disabled,” the team Add to. Despite this news, AUSD remains at $0.01159 per coin as of 4:00pm EST, at least according to coinmarketcap.com Australian Dollar Market Data.
What do you think of the Alpaca Dollar (AUSD) pegged to $1 parity on Sunday? Let us know what you think about this topic in the comments section below.
Image Source: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for reference only. It is not a direct offer or invitation to offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused or related to the use of or reliance on any content, goods or services mentioned herein.