The Acala Network’s aUSD stablecoin depegged by over 99% over the weekend and forced the Acala team to pause a hacker’s wallet, raising concerns about its claim of being decentralized.
On Sunday, a hacker took advantage of a bug on the iBTC/aUSD liquidity pool which resulted in 1.2 billion aUSD being minted without collateral. This event crashed the United States dollar-pegged stablecoin to $.01, and in response, the Acala team froze the erroneously minted tokens by placing the network in maintenance mode.