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Acala Network reveals plans to resume operations after aUSD stablecoin error

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Acala is a Polkadot parachain. (Image: Unsplash/regularguy.eth)

The net Acala revealed, this Friday (23), plans to resume operations after an issuance error that resulted in an incident with the stablecoin aUSD In August.

Acala is a decentralized finance parachain (DeFi) in polkadot (DOT) that feeds the ecosystem of aUSD with functionality between blockchains.

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A configuration incident, occurred in augustrelated to the iBTC/aUSD liquidity pool led to the erroneous issuance of three billion aUSD.

The problem in setting up the standalone contract allowed liquidity providers to Acala received the tokens issued by the error and repeatedly added more liquidity to result in the larger receipt of more aUSDleading to the loss of the stablecoin’s parity to the dollar.

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A significant amount of the stablecoin from Acala was transferred to ecosystems of other blockchains on Polkadot and centralized exchanges, although the network team confirmed that 99% of erroneous issuances remained on the network itself. Acala.

Acala recovers most tokens

After a series of urgent governance votes, several Acala operations were put on hold while the team investigated the issue. In sequence, Acala recovered 2.97 billion of aUSD issued, from 16 identified addresses and burned the tokens after discussion in the community.

In the statement made today (23), Acala said that “following the execution of the governance vote by the community and the publication of tracking reports, all liquidity pools in Acala are recapitalized and rebalanced”.

All aUSD in circulation are also fully guaranteed after Acala Foundation borrowed aUSD of your own funds to burn and get the full guarantee again. Therefore, the network Acala is ready to resume operations.

Since a vote approved the resumption of operations, the Acala recommended a phased approach. The first phase allows liquidity providers to withdraw from liquidity pools. The second phase reactivates all remaining operations, except oracles. The third phase would then activate oracles.

Acala Foundation said it will continue to work with legal partners and authorities to recover the remaining funds. A bounty of up to 5% is open to anyone who returns at least 95% of the funds involved that were transferred out of Acala. The foundation said it will not take further action against addresses that sent the funds out of the parachain.

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Source: Moneytimes

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