After the Acala exploit, the network and tokens freeze, raising concerns

Acala is a cross-chain decentralised finance (DeFi) hub that issues the Polkadot (DOT) blockchain-based aUSD stablecoin.

After the Acala exploit, the network and tokens freeze, raising concerns
Other capabilities such as swaps, xcm (cross-chain communications on Polkadot), and Oracle pallet pricing feeds were also paused until "further notice."

Over the weekend, the Acala Network’s aUSD stablecoin depegged by over 99%, forcing the Acala team to suspend a hacker’s wallet and raising doubts about the Acala Network’s claim to be decentralised.

On August 14, a hacker exploited a weakness in the iBTC, aUSD liquidity pool, resulting in the creation of 1.2 billion aUSD without collateral. The USD-pegged stablecoin fell to a cent as a result of this event, and the Acala team responded by freezing the erroneously produced tokens by putting the network into maintenance mode.

Other capabilities such as swaps, xcm (cross-chain communications on Polkadot), and Oracle pallet pricing feeds were also paused until “further notice.”

While the decision to put the network into maintenance mode and freeze funds in the hacker’s wallet may have been intended to safeguard users and the network from further harm, decentralisation advocates have slammed the move.

Acala is a cross-chain decentralised finance (DeFi) hub that issues the Polkadot (DOT) blockchain-based aUSD stablecoin. aUSD is a crypto-backed stablecoin that Acala believes is impervious to censorship. iBTC is a wrapper for Bitcoin (BTC) that can be used in DeFi protocols.

The Acala vulnerability is the second big one in a week, following an attack on Curve Finance’s front end on August 9 that directed users to approve a malicious contract. Acala’s issue differs from Curve’s in that the latter’s pools were not jeopardised, as users who directly dealt with its smart contracts encountered no problems.

aUSD is the third stablecoin to lose its peg in recent months, following in the footsteps of Terra USD (UST) in May, which has now been renamed Terra Classic USD (USTC). Tether (USDT) and Dei are two more notable depegs (DEI).

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