Acala Network Resumes Operations After Burning $2.7 Billion Wrongly Minted aUSD Stablecoins

Acala Network has announced that it has resumed its operations following the burning of the wrongly minted aUSD tokens.

acala stablecoin

The Acala Network announced that it has resumed operations following the burning of the wrongly minted aUSD tokens, and a referendum allowing liquidity pools (LPs) to withdraw liquidity from pools and unstake LP tokens.

Acala Network Resumes Operations

On August 15th, the Acala Network announced that a vulnerability in the DEX saving code had led to the erroneous minting of 3.022 billion aUSD stablecoins. As was to be expected, the report led to the instant de-pegging of its aUSD stablecoin.


Following the network failure, Acala halted all swap operations and inter-chain communications on Polkadot and its oracles. However, on Monday, September 26th, Acala announced through its official Twitter account that it had resumed all operations. Acala wrote:

The recommencement of operations followed the approval of a proposal for Acala liquidity pools (LPs) to withdraw liquidity from those pools, and to unstake LP tokens. Acala has since recovered and burned 2.97 billion of the wrongly minted aUSD tokens from 16 addresses.

Another De-pegging for aUSD 

The process of recovering the wrongly minted aUSD saw the token’s price rise from its lowest point of $0.009383, to as high as $0.84 on Monday, September 26th. However, the returned availability of the withdrawal option appears to have sparked a major sell-off.

Despite the news, which brought on a wave of positive sentiment for the stablecoin, leading many to believe that it was on its way to re-pegging, aUSD’s price has tanked 93.2% over the last 24 hours. At press time, the stablecoin is valued at just $0.05356.

On the Flipside

  • Some users repeatedly swapped aUSD error mints, thereby hindering the network’s efforts to recover the illicit stablecoins, of which they obtained just 2.97 billion, causing the imbalance in liquidity pools to grow.

Why You Should Care

The perceived manipulation in the operation of Acala has bred distrust in the project, adding to the growing list of challenges faced by stablecoins.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia