Acala Network announces an issue with the Honzon protocol which affects aUSD

According to Acala Network, it seems that the network has had a problem and is affecting aUSD. After UST, aUSD is the next coin to enter the list of depeg stablecoins. However, the main reason stems from a hole in the liquidity pool with iBTC.

A suspicious transaction was detected on Acala’s network. This is believed to be a hacker’s exploit for a vulnerability in the iBTC/aUSD pool. It is possible that the hacker took advantage of the vulnerability to drain aUSD from the pool (with an estimated 1 billion aUSD at the time of implementation). Very soon, the Acala team confirmed the vulnerability and quickly suspended the protocol to investigate.


aUSD/USDT 4-hour chart | Source: TradingView

At the time of writing, aUSD has plummeted from the $1 anchorage zone. It is trading around at $0.5718.

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