Another decentralized finance protocol (DeFi) altcoin project was hacked. This time, the hacked protocol was Acala, which is included in the ecosystem of the popular Polkadot altcoin. Here are the details…
Acala in danger: the AUSD falls to the lowest point
Polkadot’s decentralized financial network hosting the aUSD ecosystem has announced the hack on its official Twitter account. Through his post, he announced that operations were halted after escalating “configuration issues” on the network. The tweet has since left the platform’s users in a panic. The post includes the following statements:
We noticed a configuration problem in the Honzon protocol affecting AUSD. We are passing an urgent vote to suspend operations in Acala as we investigate and mitigate the problem. We will provide feedback when back to normal network operations.
After gaining access to the internet, hackers appear to have stolen over US $ 1.2 billion worth of coins. This caused an instant 70% drop in the asset. At the time of writing, the market sentiment is bearish. Therefore, aUSD is still fueling losses as well. The pullback comes shortly after the USD rose to $ 1.03 for the first time since June 30. The asset has since fallen to $ 0.009. Until the problem is resolved, it is impossible to say what the prospects will be for the asset and its platform.
What was the role of the altcoin project in the ecosystem?
The native stablecoin of the Polkadot ecosystem, aUSD, is decentralized. It is a multi-collateralized and cryptocurrency-backed stablecoin. A USD issued in February 2022 is minted through the Secured Debt Position System (CDP). The stablecoin is pegged to the USD value. So they make 1 aUSD equal to 1 dollar.
The hacks don’t seem to be ending anytime soon
As with Acala, several other DeFi protocols were breached this year. In early August, Curve Finance was attacked by hackers. It was later revealed that his protocol lost about $ 570,000. Similarly, in March, another DeFi lending protocol, Fortress, hackers announced that they had attacked the network. It was later revealed that $ 3 million had been stolen.
Some platforms offer hacks as an excuse for fraud. cryptocurrency.com As reported half an hour ago, the Brazil-based BlueBenx platform claimed it was hacked for $ 32 million. He therefore suspended the withdrawals. But many users claim that it is a scam, that the exchange steals users’ funds.
The hacks are seen as a “setback” for the platforms currently under review. However, they are nothing compared to last year’s hack. More than 12 DeFi platforms were hacked in 2021. This resulted in collective losses of over $ 11 billion in total. After each attack, the networks’ commitment to strengthening security becomes evident. However, there is no guarantee that the hacks will end in the long run.
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