Cryptocurrency analyst @Alice und Bob tweeted that the depeg was caused by US$1.2 billion of aUSD mistakenly minted in its iBTC/aUSD liquidity pool and caused a serious imbalance in the fund pool. Also, the analyst said some of the wrongly minted stablecoins have been moved out of the Acala’s chain and caused an estimated loss of US$1.6 million.
We have identified the issue as a misconfiguration of the iBTC/aUSD liquidity pool (which went live earlier today) that resulted in error mints of a significant amount of aUSD
— Acala (@AcalaNetwork) August 14, 2022
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The 1 Billion $aUSD Incident -> on-chain analysis
— Alice und Bob (⚖️,⚖️) (@alice_und_bob) August 14, 2022
Small thread about what happened on Acala during the hours of the incident and how much damage was done.
My estimation of the damage is 0-10m USD, likely around 1.6m USD with chance of recovery.
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The crypto analyst @0xTaysama – IYKYK said that the mistaken minting was due to an exploit.
The imbalance of a stablecoin’s fund pool can attract arbitrage behavior and could lead to the capital pool being illiquid.
The Acala Network, which supports blockchains of Polkadot and Kusama, said the error has been corrected and now it is tracking the wallets that received wrongly minted aUSD, according to a Twitter thread by its verified official account.
The price of aUSD bounced back and traded at US$0.90 as of 12 p.m. Hong Kong time, after it slumped to US$0.57 on Sunday, according to CoinMarketCap.
Acala said that more than 99% of the wrongly minted aUSD remains on Acala’s blockchain but has not disclosed the amount of loss.
Acala Network said they have banned trading related to the miscast aUSD until the community decides on a solution to the problem.
