On September 26, Acala Network revealed via tweet that it had restarted functioning after the burning of the incorrectly-minted aUSD token and a vote that permitted liquidity pools (LPs) to withdraw funds from pools or unstake LP tokens.
Acala Network announced on August 15 that 3.022 billion aUSD stablecoins were unintentionally minted due to a flaw in the DEX storing code. As a result of the revelation, the USD stablecoin was immediately de-pegged.
Acala Network restarted working
Acala network stopped all swap activities and inter-chain interactions on Polkadot and oracles after the network collapse. Acala, however, declared that it had resumed operations on September 26.
As per the Acala team, “Operations have resumed following the approval and passage of a proposal allowing liquidity pools (LPs) to remove funds from pools or unstake LP tokens. Additionally, Acala has retrieved and destroyed 2.97 billion aUSD in error-minted tokens from 16 addresses.”
The aUSD token’s price increased throughout the process of recovering the incorrectly minted currency, reaching a peak of $0.84 on September 24 from its lowest level of $0.009383. The withdrawal opportunity, however, seems to have caused a significant sell-off.
The stablecoin’s price has fallen by 93.2% over the past 24 hours despite news that is generally positive for the stablecoin, which was close to re-pegging. At this time, the stablecoin is worth $0.05356.
The restoration of just 2.97 billion due to some users’ repetitive swapping of some aUSD faulty mints led to an increase in the liquidity pools’ imbalance.
Stablecoins are facing increasing difficulties as a result of the perceived manipulation in the management of Acala, which has led to mistrust in the project.
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