- Acala developers almost killed their own project by mistake
- They are reviving it with the help of the community
- The protocol has already managed to recapitalize and rebalance Acala Swap’s liquidity
Others, like Acala, have to deal with their own developers, while others have to deal with hackers. A “human error” a few weeks ago nearly ended the project as a whole.
However, the issue has been somewhat resolved as a result of the community’s and developers’ collaborative efforts.
After recouping $2.970 million in USD from the $3.022 million that its team had printed in error in August, Acala network made the announcement on September 26 that it had reactivated its operations.
Acala claims that the community voted to resume network operations after burning nearly all of the printed tokens ($2.7 billion USD).
A Very Expensive Error
On August 15, the DeFi platform Acala published a report describing how they erroneously printed more than 3 billion of their aUSD stablecoin, resulting in the coin’s immediate demise. The price of an aUSD coin dropped to less than $0.01 at that point, a drop of more than 99 percent.
The failure led the network to stop swap operations, Polkadot interchain communications, and Oracles, among other things. Additionally, the team stated that business would resume safely and gradually once the error was fixed and parity with the US dollar was restored.
In order to recover unsecured tokens, the network entered maintenance mode and frozen user funds. Even though aUSD remains at $0.77, far from the adequate $1 reference, the community later voted to identify and destroy erroneously printed tokens, restoring operations.
Alcala and the current state of aUSD
Acala’s most recent report indicates that the network currently has a total circulating supply of 10,961,589 aUSD.
The Acala Foundation provided collateral for 5,837,712 USD of that. In addition, the Alcala foundation’s donation of 2,489,614 ACA, 80,853 DOT, 0.164 BTC, 995,020 INTR, and 530,700 LDOT has helped the protocol restore Acala Swap’s liquidity pools to their pre-incident levels.
However, a community vote has kept some assets frozen, and a number of centralized exchanges (CEX) that supported the aUSD recovery effort have locked them in.Acala is even rewarding users who return the involved funds with rewards of up to 5%.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.