Acala (ACA) votes to burn 1.2 billion tokens, the aUSD takes back the direction of its peg

Following a governance vote, the more than 1.2 billion aUSD artificially minted on Acala (ACA) were returned and then burned. Other investigations are still underway to trace the various tokens transformed or deposited in liquidity pools.

Acala burn artificially minted tokens

The recent misadventures encountered by Acala (ACA) could ultimately end well. Following a configuration error on its iBTC/aUSD liquidity poolsome users of the protocol were able to receive a staggering amount of aUSD, more than 1.2 billion in total.

This huge problem has in particular led to the depeg of the aUSDwhich, as a stablecoin, must not deviate from its flagship value of 1 dollar. He had thus lost more than 99% of its valueand that is why the oracles as well as various services like Honzon have been temporarily suspended following an emergency governance vote.

A proposal to burn tokens concerned was submitted August 15, and received an overwhelming majority of votes in favor. Thus, the 1.2 billion aUSD scattered over the 16 wallets concerned were returned to Honzon to be burned (burn), and the 4.3 million aUSD remaining in the iBTC/aUSD pool suffered the same fate.

The stablecoin thus gently redirects to his 1 dollar pegshowing $0.93 at the time of writing.

aUSD price

Investigations are still ongoing toidentify minted and then transformed tokens or sent to liquidity pools, the Acala press release reads:

“Further tracing reports are underway to identify aUSD mint in error 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 outflows to other addresses, parachains and exchanges. The community can collectively formulate proposals following each trace report to resolve the aUSD mint error, the state of the liquidity pools, and then gradually resume operations of the paused network. »

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Sources: Governance Vote, TradingView aUSD/USDT

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