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Acala burns 99% of aUSD involved in mint exploit Acala burns 99% of aUSD involved in mint exploit

Acala burns 99% of aUSD involved in mint exploit

Acala's stablecoin aUSD now trading at $0.91 after 99% of the tokens minted in the exploit were burnt.

Acala burns 99% of aUSD involved in mint exploit

Cover art/illustration via CryptoSlate

Acala has successfully burnt 1.288 billion aUSD reportedly lost to hackers during the Sunday exploit.

Following the mint error on the horizon protocol, the community unanimously approved a referendum to burn all erroneously minted tokens. As a result, 1.2 billion aUSD has been taken out of circulation to help mitigate the risk of the exploit and restore aUSD to peg. The burn was executed on August 16.

 

aUSD returning to peg

The net effect of the burn is playing out on aUSD, as price data from Coingecko shows it is returning to peg. As of press time, aUSD is trading at $0.91, indicating a 99% recovery from its lowest of $0.009 on Sunday.

Acala’s next plan

Initially, 1.3 billion aUSD was erroneously minted, out of which 99% have been burnt. The 4,299,119 aUSD โ€” representing the remaining 1% โ€” were reportedly swapped for other tokens and added to liquidity pools, including the recently launched iBTC-aUSD pool.

On-chain analysis by a community member revealed that 1.6 million USD worth of aUSD could still be recovered.

Acala has revealed it will trace the wallet addresses linked to the remaining funds and burn the tokens upon recovery.

Posted In: Hacks, Stablecoins

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