Acala blockchain to burn over 1 billion stablecoins minted by hackers

Representatives of the Acala blockchain have decided to burn more than 1 billion AUSD stablecoins minted by hackers — the attackers attacked the platform due to an error in the iBTC/AUSD liquidity pool and produced AUSD stablecoins worth $ 1.28 billion.

According to preliminary data, the hackers minted 1,292,860,248 AUSD, which caused the value of the stablecoin to drop by 99%. However, if the developers manage to return the tokens to the Honzon protocol and burn them, there is a chance that the USD will be pegged to the US dollar.

Some members of the cryptocurrency community have suggested that the problems of the DeFi platform will lead to a Terra-like disaster. However, unlike UST, USD is not an algorithmic stablecoin and is backed by several assets: DOT, KSM, ACA, KAR, BTC, and ETH.