Polkadot’s DeFi parachain, Acala Network, has resumed full operations and services this week, after recovering from the hack it suffered in August that minted billions of unbacked aUSD.
Acala Network developers have confirmed on Twitter that the parachain built on the Polkadot blockchain has resumed all operations and that its functionalities are once again available to users.
Acala Network has been having a rough time after a group of users managed to exploit a bug in the iBTC/aUSD liquidity pool to mint billions of tokens of the native stablecoin, Acala Dollar (aUSD), out of thin air. The hack cost aUSD its stability, causing it to plummet on the market after the hack was revealed.
The price of Acala's decentralized stablecoin It fell to $0,009 dollars per unit, according to data from the CoinMarketCap platform. However, the developers' quick actions and the roadmap they designed to recover the minted tokens and stabilize the protocol seem to have restored the confidence of its users and, with it, aUSD's value, which is close to its parity with the dollar.
Although the stablecoin has not yet fully recovered, at the time of writing this article it is trading at around $0,86 per unit, showing a daily increase of almost 5%, this Friday.
All Acala Network functionalities are resumed
Oracles, settlements, lending, and other existing functionality on the Acala Network protocol began resuming at block height 2.003.000, according to a Twitter post earlier this week by the parachain’s developers.
Currently, all Acala Network operations and functionality are active. Developers submitted to emergency governance votes the decisions they have made over the past two months following the attack, including the third stage of the process of resuming Acala operations.
In this last vote, the totality of the parachain votes, i.e., 100% of governance, supported the proposal to restart CDP oracles, settlements, and lending.
Acala had suspended these operations after the hack to protect liquidity providers, vault owners and other users.
Billions of USD have been burned
In late September, Acala Network developers posted a status update, reporting that much of the aUSD minted during the hack had been recovered and burned.
On the other hand, they also indicated that many of the stablecoin tokens remained blocked on the chain, according to the protocol's community governance votes, or were blocked by centralized exchange platforms, which also collaborate with the parachain to locate the aUSD coins minted by mistake.
Currently, Acala Network has managed to stabilize the protocol, rebalancing and recapitalizing its liquidity pools, while guaranteeing and collateralizing all aUSD in circulation.
aUSD recovers part of its value
As mentioned at the beginning, aUSD is close to returning to parity with the dollar, trading at around $0,86 per token currently. According to data from CoinMarketCap, aUSD has rallied 4,6% over the past 24 hours and 5,3% over the past week.
Source: CoinMarketCap
The parachain developers have pledged to continue their efforts to recover the remaining aUSD tokens minted in error. They also indicated that they will further strengthen the security of their network and that of their markets with the elements planned in their roadmap.
Continue reading: Aave DAO approves creating the GHO overcollateralized stablecoin
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
