The crypto-hacking blitz isn’t slowing down in what appears to be an open season on the cryptoverse, as a suspected misconfiguration on the Acala network has resulted in Polkadot and Kusama’s decentralized stablecoin, $aUSD, being depegged from the $1 mark. According to reports, up to 1.288 billion $aUSD were erroneously minted, causing the $aUSD value to fall as low as $0.58
According to a Twitter thread by the Acala network at 11:00 UTC on Monday, August 15, the team identified the issue as “a misconfiguration of the iBTC/aUSD liquidity pool,” one that resulted in the erroneous mints of aUSD which were transferred to the wallet addresses of a number of iBTC/aUSD LP contributors when they claimed their iBTC/aUSD LP rewards. The misconfiguration has since been rectified.
According to sources, the $iBTC – $aUSD pool recently concluded bootstrapping and began trading. It was incentivized with $aUSD, $ACA & $INTR. It seems the incentives.claim_rewards() extrinsic function on the Acala network wrongfully minted $aUSD in exponential amounts.
99%+ of erroneously minted aUSD remain on the Acala parachain with a small proportion transferred out from Acala. To contain the error minted aUSD, urgent gov votes were passed to pause Honzon protocol, XCM, EVM, non-ACA token transfers, oracle pallet, & LDOT instant redeem”
The 1,288,561,129 erroneously minted aUSD have been traced to some identified addresses, while 4,299,119 erroneously minted aUSD have not been claimed and remain in the iBTC/aUSD reward pool.
In a bid to rectify the situation, the team requested recipients of erroneously minted aUSD and users who have swapped the erroneously minted aUSD for other tokens and hold them on another chain to transfer such tokens to these specified addresses:
On Acala: 23M5ttkmR6KcoTAAE6gcmibnKFtVaTP5yxnY8HF1BmrJ2A1i
On Polkadot: 13YMK2eYoAvStnzReuxBjMrAvPXmmdsURwZvc62PrdXimbNy
On Moonbeam: 0x7369626cd0070000000000000000000000000000
The news elicited mixed reactions from the crypto community, with some blaming the team’s oversight for the anomaly. However, the team stated that it is working with partners and contributors to trace outflows of erroneously minted aUSD-related transactions, and investigation results will be regularly published for the crypto community’s attention.
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