The Acala project lost billions of US dollars in crypto assets as a result of an exploit in a newly deployed liquidity pool, and the value of the aUSD stablecoin dropped to almost zero.
The Acala project team reported on Twitter that the network was attacked by hackers. The aUSD stablecoin dropped by 99% when attackers took advantage of a bug and released 1.28 billion project tokens. After identifying the exploit, the Acala team disabled the transfer of erroneously issued aUSD left in the Acala parachain.
“We have identified configuration issues with the Honzon protocol that affect the aUSD stablecoin, leading to a vote to suspend Acala operations while the issue is being investigated,” the post reads.
After some time, the Acala team reportedwhich identified the issue as a misconfiguration of the previously launched iBTC/aUSD liquidity pool, resulting in a significant amount of aUSD being issued in error.
“The misconfiguration has been corrected and the wallet addresses that received the erroneously issued stablecoins have been identified. We are monitoring network activity for these addresses,” the team said.
It is likely that this is a wallet owned by the attacker with about $1.27 billion in assets. Although Acala has not yet confirmed the amount associated with the hack, Binance CEO Changpeng Zhao declaredthat the attacker could receive “more than a billion dollars.”
Blockchain security experts “Alice und Bob” indicatedthat the attacker, who released $1.27 billion worth of assets, was not the only one who took advantage of the error. Several other users allegedly stole thousands of dollars from the DOT liquidity pool.
Launched earlier this year, the aUSD stablecoin successfully held a peg to the US dollar before the hack, but after the attack, its price dropped from about $1.03 to $0.009.
It is not yet clear how the project will restore the stablecoin’s peg to the US dollar. For example, it took several years for the Beanstalk project to restart the decentralized stablecoin BEAN.
Source: Bits
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