A billion in the wild and -99% in an instant

a new stablecoin nibbling on the dust

If there is some form of stability to be found in 2022 in the crazy cryptocurrency industry, it is the regularity with which hackers follow each other. A worrying phenomenon, including the sector’s least risky asset: stablecoins. distance LUNA Industrial Disaster or recently The collapse of Nirvana Finance’s $NIRV$Now, it’s Acala Finance’s Aussie turn to join the crowded cemetery of left-early stablecoins.

Spoiler: We can’t.

Finally, except of course if you European Central Bank or the US Federal Reserve Bank In this case, you will see something Absolutely normal. Whatever it is, this attempt at a round of strength one can sum up Sad episode of the day. or how, from a protocol that really holds “only” 100 million dollars from TVL (Total value insuredi.e. funds frozen in said protocol) one or more hackers tried to start an improbable printing press, in infinite life mode.

A virtual theft attempt occurred on the network dottedIn the role of the bank Akala network And its internal stable currency, aUSD. The American dollar he is stablecoin It’s called “multiple guarantees.” In other words, its equivalent of 1 aUSD = 1 USD is not guaranteed by holding an equivalent amount in USD in cash (such as USDT for Tether orUSDC From the circle for example), but by freezing a basket of crypto-assets that serve as the basis and guarantee of their stability.

aUSD is a stable currency with multiple collateral.
aUSD, the Akala stablecoinSource: Acala

Attractive on paper, this Architectural Engineering considered, however, compoundand therefore rather crispas evidenced by the multiple collapses of other algorithmic stables in recent months.

– 99% against a dollar from Acala Finance

a stablecoin It owes its strength and success to both the robustness of its protocol and the quality of its core assets. The group, in fact, guarantees the trust of its users. Triple core board that crashed a few hours ago. Indeed, as part of a coordinated attack Acala Finance’s aUSD stablecoin hacked.

In fact, the failure appears to come from not adjusting the iBTC/aUSD liquidity pool according to the first elements press releases By the Acala team on Twitter. Defect does not allow less than Almost infinite minting of the new Australian dollar. A flaw that was quickly exploited by smart people who quickly started producing a billion new tokens, In other words, 1 billion dollars (No more than 10 times the available warranty)!

Among the most obvious consequences, the TVL value of the protocol suddenly skyrocketed from about $100 million to $50 million, according to specialist website Defillama.

The fall of Akala Financial TVL aUSD
Acala’s TVL (total value closed) lost 50% of its value – Source: Defillama

DAO from Acala responded quickly and loudly Freezing transactions through governance, trying to reduce the damage. decisive action, but it did not prevent the so-called ” depeg From the Australian dollar, that is, its stable value of the one dollar stopped, and the protocol suddenly sank into the minting of the new unsecured US dollar currency. A picture worth 1000 evils, below you will see how painful the day must have been for US dollar holders

The collapse of the Australian dollar
If 2022 should be a picture

Still according to the project team, 99% of the US dollar has been frozen. In addition, a small amount of embezzled assets were traded in Parachin Alcala for ACA tokens and other assets. One doubts which assets are now under close scrutiny. Pending resolution of the incident and a vote on the verdict, all withdrawal and swap functions have been disabled.

Take advantage of the low-cost cryptocurrency buying opportunities that the market offers us! So as not to miss the opportunity of a lifetime, Sign up without delay to the reference crypto exchange platform FTX. In addition, you can take advantage of the lifetime reduction on your trading fees.

Related articles

Leave a Reply

Your email address will not be published.

Back to top button