Acala Network resumes operations after burning 2.7B in aUSD stablecoin

After the collapse of mining for Stalkcoin aUSD, the Akala Network announced on Monday that it has launched a referendum allowing LPs to withdraw liquidity from pools or withdraw LP tokens.

In August, a misconfiguration of the iBTC/aUSD liquidity pool resulted in an erroneous withdrawal of 3.022 billion USD, leaving the price less than $0.01 below the dollar peg. Akala is a decentralized financial platform built on the Polkadot (DOT) ecosystem.

The wallet addresses that received the devalued aUSD were identified through a chain search, allowing the recovery of 2.97 billion USD of error minutes from 16 addresses. Another 35 accounts were identified as erroneously generating USD 12.38 million in revenue.

According to the incident report, 16 iBTC/aUSD LP contributors received error mints, and some of them repeatedly added more liquidity to the pool by requesting more aUSD error mints and causing more aUSD to be issued by mistake. He explained.

“Some of these users frequently switched large amounts of aUSD error mints as the pool’s imbalance grew. They then transferred large amounts of aUSD error mints to other XCM-linked chains and CEXs.”

The cause of the risk was “a vulnerability in the DEX savings code that is part of the incentives,” the company announced a security map to strengthen the security of the Akala network.

The report revealed the full extent of the event. A total of 3.022B aUSD errors were detected, 2.97 billion USD were detected in the addresses of the 16 known LP contributors, and 12.38M aUSD error rates were detected or found in the 35 highest amount of AUSD errors. Associated with the purchased accounts. The remaining 52.068M aUSD error mints, errors from minted tokens and addresses involved in the disaster have been identified.