Yet another Defi protocol has been tampered with by hackers, who, in the last couple of months, have succeeded in breaching the security of many other protocols.
AUSD falls to its lowest point as Acala remains under threat. It appears that upon gaining access to the network, the hackers issued over 1.2 billion aUSD. This caused the asset to immediately drop by 70%. At the time of this report, aUSD is still nurturing losses, as market sentiments remain highly bearish.
The native stablecoin of the Polkadot ecosystem aUSD, is a decentralized, multi-collateral crypto-backed stablecoin. Launched in February of 2022, aUSD is minted through the Collateralized Debt Positions (CDPs) system. The stablecoin is pegged to the value of the USD. Thereby making 1 aUSD equal to 1 dollar.
JUST IN: Hackers printed 1.2 billion $AUSD on the Acala Network through an exploit.
— Watcher.Guru (@WatcherGuru) August 14, 2022
Although the hacks are a setback to the already scrutinized platforms, they are nothing compared to last year’s hack. Back in 2021, over 12 DeFi platforms were hacked, resulting in over $11 billion in a collective loss. Although networks reveal after every attack, their commitment to tightening security; there’s still no telling where the market is heading in the long term.
Decentralized Finance protocol hacks might not be coming to an end anytime soon
As with Acala, several other protocols of Decentralized Finance have been under attack this year. Early into August, CurveFinance, was under attack by attackers. It was later revealed that the Decentralized Finance protocol lost approximately $570,000. Similarly, back in March, another Decentralized Finance lending and credit protocol Fortress, revealed that $3 Million was stolen as attackers railed the network.
We have noticed a configuration issue of the Honzon protocol which affects aUSD. We are passing an urgent vote to pause operations on Acala, while we investigate and mitigate the issue. We will report back as we return to normal network operation.
— Acala (@AcalaNetwork) August 14, 2022
Despite the fact that the hacks are a setback to the already scrutinized platforms, they are nothing compared to last year’s hack. Back in 2021, over 12 Decentralized Finance platforms were hacked, resulting in over $11 Billion in collective loss. Despite the fact that networks reveal after every attack, their commitment to tightening security ; there’s still no telling where the market is heading in the long term.