News

Not Another UST; Acala Team Shares Positive Update On aUSD Hack

Published by
Not Another UST; Acala Team Shares Positive Update On aUSD Hack

Earlier today, Polkadot DeFi’s hub Acala had its stable coin aUSD, exploited for about 1.2 billion aUSD. It has since addressed the issue on its twitter account explaining that the problem had been identified to be a misconfiguration of the IBTC/aUSD liquidity pool launched earlier today.

Advertisement

No repetition of UST Hack

The hack had thrown crypto twitter community into a frenzy earlier today with many speculating a replay of the UST scenario that occurred a few months back. It however seems it’s nothing remotely similar to the collapse of the algorithmic stable coin as it is over-collateralized.

Acala explained in its statement on twitter that the erroneously minted aUSD which immediately depegged the stable coin to less than 70% of its original value remains on its parachain and from the statement, it seems the situation will be salvaged in no time.

Pending Acala community collective governance decision on resolution of the error minting, these erroneously minted aUSD remaining on Acala parachain along with these swapped Acala parachain native tokens have been transfer disabled. The team said in its statement.

Some other functions on the network have also been disabled pending governance vote to avoid liquidation. The Polkadot native token has shown signs of recovery.

Advertisement

How is the Acala dollar faring now?

Per CoinmarketCap, aUSD is just a few cents away from reclaiming its peg and currently trades at $0.9166 as at the time of writing. The stablecoin was launched early this year and it functions with the backing of a multi-collateral mechanism. It can be minted using coins like DOT and LCDOT as collateral.

The team has also asked that people and whitehats who received the erroneously minted Stablecoin return it to some address that it published, also announcing that every address that received the stable coin from the hack are known.

Advertisement

Share
Abigal Vee

Abigal .V. is a cryptocurrency writer with over 4-years of writing experience. She focuses on news writing, and is skilled in sourcing hot topics. She’s a fan of cryptocurrencies and NFTs.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Indian Court Declares XRP as Property in WazirX Hack Case

In a landmark ruling, the Madras High Court in India has declared that XRP and…

October 27, 2025
  • News

Ethereum Supercycle Strengthens as SharpLink Gaming Withdraws $78.3M in ETH

Ethereum’s fundamentals continue to strengthen as major investors and analysts signal renewed confidence in the…

October 27, 2025
  • News

Trump Tariffs: Secretary Bessent Declares ‘Fantastic’ Trump–Xi Talks, Bitcoin Breaks $113,000

Bitcoin (BTC) has climbed above $113,000 as optimism grew ahead of President Donald Trump’s meeting…

October 26, 2025
  • News

Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?

Bitcoin traders are turning their attention to this week’s Federal Open Market Committee (FOMC) meeting.…

October 26, 2025
  • News

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House crypto czar David Sacks has shown his support for Donald Trump's nomination of…

October 25, 2025
  • News

Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role

Crypto firm Ripple has revealed that it is exploring new ways to use XRP within…

October 25, 2025