$0.01165, 1.2 billion ausd, acala network, acala protocol, ausd, depeg, depegging, honzon protocol, ibtc/ausd pool, losing parity, misconfiguration, polkadot, polkadot-based stablecoin, stablecoin, stablecoins, usd parity, usdc, usdn, usdt, ustc

2022 has been the year of broken stablecoins as a myriad of dollar-pegged crypto assets depegged from their dollar value this year. On August 14, the Polkadot-based stablecoin alpaca usd (AUSD) dropped below a U.S. penny in value, only to bounce back to the $0.95 region hours later. Reports say that the Acala protocol was compromised and an attacker managed to mint 1.2 billion AUSD.

Polkadot’s AUSD Stablecoin Slides Well Below the $1 Parity

Besides USDT, USDC, DAI, and a couple of others, a number of stablecoins have had an awful year in terms of holding their U.S. dollar value. The depegging of terra usd (UST), now known as USTC, caused the entire Terra ecosystem to implode and more than $40 billion evaporated from the crypto economy. Following that event, stablecoins like Waves’ neutrino usd (USDN), Abracadabra’s magic internet money (MIM), and Tron’s USDD slipped below the $1 mark.

JUST IN: Hackers printed 1.2 billion $AUSD on the Acala Network through an exploit.

— Watcher.Guru (@WatcherGuru) August 14, 2022

While Terra’s USTC never regained the $1 peg, USDN, MIM, and USDD are all swapping for $0.99 per coin on August 14, 2022. However, on the same day, the Polkadot-based stablecoin alpaca USD (AUSD) lost its peg. Data from coinmarketcap.com shows an all-time low of around $0.006383 per unit was recorded on Sunday. While writing this post at 3:15 p.m. (EST), AUSD’s price had bounced back to the $0.95 range, but then it quickly slipped to $0.01165 in a matter of no time at all.

Polkadot’s Acala Network tweeted about the issue just prior to the massive fluctuations in AUSD’s value. “We have noticed a configuration issue of the Honzon protocol which affects AUSD,” Acala Network’s official Twitter page wrote. “We are passing an urgent vote to pause operations on Acala, while we investigate and mitigate the issue. We will report back as we return to normal network operation,” the team added.

Binance CEO Changpeng Zhao (CZ) also tweeted about the AUSD situation. CZ wrote:

ACALA protocol is currently compromised. Apparently, there was a bug in the iBTC/AUSD pool and [the] attacker’s wallet now holds over a billion AUSD. We are monitoring. (AUSD is not listed on Binance).

Acala Protocol Says ‘Misconfiguration’ Resulted in ‘Error Mints of a Significant Amount of AUSD’

A flurry of other reports say a hacker managed to mint 1.2 billion AUSD, which ultimately caused the stablecoin’s de-pegging incident. Hours later, Acala confirmed that there was an error that resulted in the minting of large amounts of AUSD. “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,” the team said on Sunday.

$0.01165, 1.2 billion ausd, acala network, acala protocol, ausd, depeg, depegging, honzon protocol, ibtc/ausd pool, losing parity, misconfiguration, polkadot, polkadot-based stablecoin, stablecoin, stablecoins, usd parity, usdc, usdn, usdt, ustc

Alpaca usd (AUSD) chart on August 14, 2022, at 3:49 p.m. (EST).

Acala says the “misconfiguration has since been rectified” and the team managed to identify the wallets that received the erroneously minted AUSD tokens. Acala published this news at 7:59 a.m. (EST) and noted that an onchain investigation was underway.

“Pending Acala community collective governance decision on [the] resolution of the error minting, these erroneously minted aUSD remaining on Acala parachain along with these swapped Acala parachain native tokens have been transfer disabled,” the team added. Despite this news, AUSD’s U.S. dollar remains at $0.01159 per coin at 4:00 p.m. (EST), at least according to coinmarketcap.com’s AUSD market data.

NEWS RELATED

8 Years Ago Today: Bitcoin Traders Slayed the Infamous Bear Whale Who Dumped 30,000 BTC in a Single Trade

Eight years ago today on October 6, 2014, while the price of bitcoin was coasting along at $330 per unit, an anonymous Bitstamp trader placed an order to sell 30,000 bitcoins. Moreover, the trader, now infamously known as the “Bear Whale,” sold the coins at $300 per unit, which ...

View more: 8 Years Ago Today: Bitcoin Traders Slayed the Infamous Bear Whale Who Dumped 30,000 BTC in a Single Trade

Brazilian Presidential Candidate 'Lula' Da Silva Signals Support for Central Bank of Brazil Involvement in Crypto Regulation

The presidential candidate that obtained most of the votes in the first Brazilian ballot round, Luis Inacio Da Silva, better known as “Lula,” declared that the Central Bank of Brazil should be responsible for building a cryptocurrency law framework. Lula also stated that the impact of cryptocurrencies should be ...

View more: Brazilian Presidential Candidate 'Lula' Da Silva Signals Support for Central Bank of Brazil Involvement in Crypto Regulation

MakerDAO to Invest $500 Million in US Government Bonds

The move comes months after the protocol’s founder advocated against centralized assets in the aftermath of Tornado Cash.

View more: MakerDAO to Invest $500 Million in US Government Bonds

Grayscale's New Co-Investment Vehicle Aims to 'Capture the Upside of Crypto Winter'

On October 6, Grayscale Investments announced a new venture that gives accredited investors the opportunity to invest in the mining infrastructure that powers the digital asset ecosystem. According to the announcement, the co-investment vehicle is called Grayscale Digital Infrastructure Opportunities (GDIO), and the crypto mining firm Foundry will handle ...

View more: Grayscale's New Co-Investment Vehicle Aims to 'Capture the Upside of Crypto Winter'

Bitcoin․com Announces Public Sale of VERSE Ecosystem Token

press release Bitcoin.com, a digital ecosystem and secure self-custody platform where users can safely and easily interact with cryptocurrencies and digital assets, has announced that Sale B, or the public sale of the VERSE utility and rewards token, will begin on November 1, 2022. Verse will support people onboarding ...

View more: Bitcoin․com Announces Public Sale of VERSE Ecosystem Token

Mike McGlone Says Gold Price Is 'Firming' — Commodity Strategist Insists BTC, ETH Will 'Outperform Most Major Assets'

Over the last two days, Bloomberg Intelligence commodity analyst Mike McGlone published the firm’s commodity and crypto outlook reports, and McGlone’s latest analysis details that the price of gold could resume its rally after a foundation similar to 1999 is constructed. Moreover, as far as bitcoin and ethereum are ...

View more: Mike McGlone Says Gold Price Is 'Firming' — Commodity Strategist Insists BTC, ETH Will 'Outperform Most Major Assets'

Biggest Movers: UNI Closes in on 5-Week High, While SOL Also Climbs

Uniswap moved closer to its highest point since late August on Thursday, as the token extended recent gains. Today’s surge is the fourth consecutive day that prices have climbed, leading the token to break out of a key resistance level in the process. Solana was also in the green, ...

View more: Biggest Movers: UNI Closes in on 5-Week High, While SOL Also Climbs

EU Council Endorses Markets in Crypto Assets (MiCA) Legislation

Council of the EU, one of the European Union’s legislative bodies, has approved the proposed regulatory framework for the European crypto space. It’s now up to European lawmakers to approve the Markets in Crypto Assets package before its final adoption. Comprehensive Crypto Regulation Moves Closer to Adoption in EU ...

View more: EU Council Endorses Markets in Crypto Assets (MiCA) Legislation

Bitcoin, Ethereum Technical Analysis: Ethereum Nears $1,400, as Price Hits 10-Day High

Polkadot Seeing Lots Of Development Activity – But Why Is DOT Stuck In The Cellar?

Unido EP: Enterprise-Grade Digital Asset Management, for Everyone

Cryptocurrency as Money — Store of Value or Medium of Exchange?

South Korean Authorities Officially Void Do Kwon’s Passport

Namibian Central Bank: Virtual Assets 'Remain Without Legal Tender Status' but Merchants Can Still Accept Them as Payment

Blockchain Game Splinterlands Reveals Gamefi Platform Sold 10 Million Packs of Chaos Legion Series Cards

South Korea Reportedly Freezes Do Kwon's Crypto Worth $40M — Luna Founder Says the Funds Are Not His

Elon Musk Hints Everything App 'X' Is Coming — Says Buying Twitter Accelerates Creation of X

Solidus Ai Tech Announces New Partnership With Metaverse Giants Galaxy Arena

Over 300 NFTs From Three Arrows Capital’s NFT Fund Moved by Liquidator to New Wallet

Bitcoin's Total Network Hashrate Hits an All-Time High at 321 Exahash per Second

OTHER NEWS

Breaking thailand news, thai news, thailand news Verified News Story Network