Acala community votes to burn 2.97 billion of erroneously minted aUSD stablecoin

Published at: Aug. 22, 2022

According to a new post by Acala Network co-founder Bette Chen, the community has voted to burn 2.97 billion worth of Acala USD (aUSD) stablecoin.

Acala is a decentralized finance platform built on the Polkadot (DOT) ecosystem. The week prior, the price of aUSD fell to less than one-cent from its dollar-peg after it was discovered that 3.022 billion aUSD were erroneously minted through a misconfiguaration of the iBTC/aUSD liquidity pool, which went live on August 14. 

The misconfiguration has since been rectified, and wallet addresses that received the erroneously minted aUSD have been identified via on-chain tracing. Over 99% of all newly minted aUSD remains on the Acala parachain. However, an estimated $9.69 million worth of funds were swapped from aUSD to DOT and sent to centralized exchanges.

Thirty-five accounts were also identified as having acquired an excess of 12.38 million erroneously minted aUSD.

aUSD is over-collateralized by a variety of digital assets in the Polkadot and Kusama ecosystem, with a deposit rate of 195% per aUSD minted. Yet, the stablecoin's current price of $0.84 indicates that the erroneously minted coins are still disrupting the system's equilibrium. Developers have issued bounties and public calls for the glitched assets to be returned back to the Acala network. Chen also warned:

"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."
Tags
Related Posts
Fetch.ai (FET) hits a 2-year high after DeFi integration and Bosch partnership
Artificial intelligence and machine learning are changing the face of commerce, computing and other technologies on a daily basis. In its most basic form, the information gathered by artificial intelligence is really just data that can be used to make interpretations and blockchains are built for the storage and transmission of data. Fetch.ai (FET) is a “Cambridge-based artificial intelligence lab” that has the goal of using distributed ledger technology to build a decentralized machine learning platform capable of securely transacting any form of data globally. Data from Cointelegraph Markets and TradingView shows that the price of FET has surged 720% …
Technology / March 7, 2021
Our Man in Shanghai: Huobi to become Grayscale of Asia, Yao Ming’s NFT wine and more ...
This weekly roundup of news from Mainland China, Taiwan and Hong Kong attempts to curate the industry’s most important news, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations. Huobi Asset Management is looking to be the Grayscale of Asia with the launch of four cryptocurrency-related tracker funds. The funds include a Bitcoin Fund, an Ethereum fund, a multi-asset basket of digital currencies, and a private equity fund for mining businesses. The aim is clearly to entice major institutional investors into the space with a product that feels familiar. The fund and asset management company is set …
Technology / April 30, 2021
Spiderman NFT sells for 12.75 ETH as Marvel comic artists land on Ethereum
A unique Spiderman drawing by Marvel comics artist Adam Kubert has sold for 12.75 Ether (ETH) ($25,000) after being turned into a non-fungible token on the Ethereum blockchain. Kubert’s piece is one of 25 unique artworks expected to be launched as NFTs by several Marvel artists, including Dan Panosian, Matteo Scalera, Dave Johnson, Andy Kubert and Eric Canete, as announced on Feb. 15. The NFTs are to be sold on Portion.io, a platform that allows users to create and auction rare art on the Ethereum blockchain. A recent announcement by the Portion team stated, “We would like to announce that …
Technology / Feb. 18, 2021
YouTube head of gaming Ryan Wyatt to resign and join Polygon Studios as CEO
On Tuesday, Ryan Wyatt, head of gaming at YouTube, announced he would be leaving the video-sharing platform in February. Partly due to his leadership, YouTube Gaming sees over 250 million daily logged users per day with hundreds of billions of watch time each year. Wyatt cited his passion for blockchain and Web 3.0 development in explaining his resignation. H will soon join Polygon Studios as its CEO. Polygon Studios is the gaming and non-fungible tokens, or NFTs, arm of the namesake layer two Ethereum (ETH) scaling network (MATIC). Polygon plans to commit $100 million to projects led by its subsidiary …
Technology / Jan. 25, 2022
Axie Infinity devs release governance token for Ronin Blockchain to mixed player response
On Thursday, Sky Mavis, the creator of monster-battle game Axie Infinity, released its much-anticipated RON governance token. The token is based on its Ethereum (ETH) sidechain Ronin Network. Its purpose includes paying for transactions on Ronin, staking, and participating in community proposals. According to its developers, Ronin has over 250,000 unique daily active addresses. When ranked by the number of weekly active users, Katana, Ronin's decentralized exchange (DEX), is the No. 2 largest DEX. In addition, the blockchain surpassed $5 billion in deposited value, with 15% of all NFT transactions occurring on the network in 2021. In total, there have …
Decentralization / Jan. 27, 2022