Following a governance vote, the more than 1.2 billion aUSD artificially mined on Acala (ACA) were returned and then burned. Further investigations are still underway to trace the various tokens transformed or deposited in liquidity pools.
Acala burns artificially mined tokens
The recent misadventures encountered by Acala (ACA) may finally end well. Due to a configuration error on its iBTC/aUSD liquidity pool, some users of the protocol were able to receive a staggering amount of aUSD, over 1.2 billion in total.
This huge problem led to the aUSD’s collapse, which as a stablecoin is not allowed to stray from its flagship value of $1. As a result, the aUSD had lost more than 99% of its value, which is why oracles and various services like Honzon were temporarily shut down following an emergency governance vote.
A proposal to burn the affected tokens was submitted on August 15, and received an overwhelming majority of votes in favor. As a result, the 1.2 billion aUSD scattered across the 16 affected wallets were returned to Honzon to be burned, and the remaining 4.3 million aUSD in the iBTC/aUSD pool suffered the same fate.
The stablecoin is now slowly moving back towards its $1 peg, standing at $0.93 at the time of writing.
Investigations are still underway to identify tokens mined and then processed or sent to liquidity pools, Acala’s statement said:
“Further tracing reports are underway to identify erroneously minted aUSDs that were exchanged for other tokens or added to liquidity pools, and to identify other relevant transfers made by the 16 wallet addresses and token exits to other addresses, parachains and exchanges. The community can collectively formulate proposals following each tracing report to resolve the aUSD mint error, liquidity pool status, and then gradually resume operations of the paused network.”
