Acala aUSD Depeg Exploit event

Event · PageRank 0.0022

Overview

In August 2022 Acala's aUSD stablecoin, on the Polkadot ecosystem, lost its dollar peg after a misconfiguration in the newly launched iBTC/aUSD liquidity pool allowed enormous quantities of aUSD to be minted without collateral backing. Roughly 1.29 billion erroneously minted aUSD were traced across sixteen accounts, plus additional tokens in the incentive pool, and the token's price fell close to zero before the network was paused. Acala's community governance voted to recover and burn the erroneously minted tokens, returning them to the Honzon protocol, and the parachain resumed operation after the fix.

Within the DeFi Intel graph, Acala aUSD Depeg Exploit connects to 1 tracked entity, most strongly to Polkadot.

Relations

Top connections in the DeFi Intel knowledge graph (confidence-weighted, 1 of 1 total).

Frequently asked questions

What caused the aUSD depeg?

A misconfiguration in the newly launched iBTC/aUSD liquidity pool that permitted aUSD to be minted without the required collateral backing.

When did it happen?

In mid-August 2022, over roughly 14–17 August.

How did Acala respond?

The network was paused and governance voted to recover and burn the erroneously minted aUSD, including returning about 1.29 billion aUSD to the Honzon protocol for burning.