Following the mining failure of its aUSD stablecoin, Acala Network announced on Monday that it has resumed operations following a referendum that allowed liquidity pools (LPs) to withdraw liquidity from pools or decrypt LPs.
In August, an iBTC (IBTC)/aUSD liquidity pool configuration error accidentally leaked $3.022 billion, causing the price to fall below $0.01 against the USD peg. Acala is a decentralized finance (DeFi) platform built on the Polkadot ecosystem.
The addresses of the wallets in which US dollars were minted were identified through online tracing, allowing $2.97 billion to be erroneously recovered from 16 addresses. Another 35 notes, which were listed as containing $12.38 million, were mistakenly minted.
According to the crash report, 16 IBTC/aUSD LP contributors received an error, and some of them repeatedly added liquidity to the pool and claimed new USD errors that led to more USD being incorrectly minted. I noted:
“Some of these users repeatedly traded more and more USD errors as the errors grew during the rally. They then transferred a large number of USD errors to other XCM-related chains and other trading operations.”
The company, which also announced a security roadmap to improve the security of the Acala network, said the incident was caused by “a vulnerability in the DEX delivery code that is part of the incentive platform.”
The report revealed the full extent of the arrangement. In total, $3.022 billion in errors were reported, $2.97 billion was found in the addresses of 16 identified LP members, and $12.38 million was found in error in the first 35 accounts that had a significant amount of errors in US dollars or they are linked to the accounts you have. $52.068 million worth of residual fault codes, faulty switches and addresses involved in the incident were identified.