Acala Network To Resume Operations After Passing Vote
- A vote permitted LPs to withdraw liquidity from pools or unstake LP tokens.
- There was a reported minting mistake of 3.022 billion aUSD.
The Acala Network said on Monday that it has resumed operations after the mining failure involving its stablecoin aUSD. Thanks to a vote permitting LPs to withdraw liquidity from pools or unstake LP tokens.
In August, due to a bug in the iBTC/aUSD liquidity pool, 3.022 billion aUSD were accidentally created. Moreover, driving the value of the token down to less than $0.01 from its $1 peg. Acala operates as a decentralized banking system based on the Polkadot (DOT) ecosystem.
2.97 Billion aUSD Recovered
On-chain tracking discovered the 16 wallet addresses that had received the mistakenly created aUSD. Enabling the recovery of 2.97 billion aUSD. Furthermore, there were 35 more accounts that have gained some of the 12.38 million erroneously created aUSD.
The incident report states that 16 iBTC/aUSD LP donors were given the erroneous aUSD mints, and that some of those contributors continuously provided additional liquidity to the pool, resulting in even more aUSD being mistakenly mint.
The report noted:
“Some of these users repeatedly swapped more aUSD error mints as the imbalance of pools grew. They then transferred a significant amount of aUSD error mints to other XCM-connected chains and CEXs.”
Company officials said that the breach occurred because there “was a vulnerability in the DEX saving code that is part of the incentives pallet,” and they also detailed plans to improve Acala’s security.
The report gave a complete picture of what happened. Moreover, there was a reported minting mistake of 3.022 billion aUSD; 2.97 billion aUSD were located in the addresses of the 16 identified LP donors, and 12.38 million aUSD error mints were located on the top 35 accounts that acquired or were related to the accounts that acquired it.
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Read more: https://thenewscrypto.com/acala-network-to-resume-operations-after-passing-vote/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
