Acala exploit has led to its native stablecoin plunging 99% after hackers exploited a bug in a freshly deployed liquidity pool. They were able to mint 1.28 billion tokens.
Developers said that the Acala exploit was possible due to a misconfiguration of the iBTC/aUSD liquidity immediately after it turned to live this Sunday. Liquidity pools are digital piles of crypto-currency. It is locked in smart contracts which results in more liquidity for quick transactions on DeFi protocols and decentralized exchanges.
Following the Acala exploit, the team disabled this transfer functionality of the aUSD that was minted erroneously over the para-chain. They refer to customs and project-specific blockchains that are integrated within the Kusama and the Polkadot networks. It can be customized for multiple numbers of used cases.
Acala Exploit Tokens Placed Leads To Network Being Place Under Maintenance
The Acala exploit attacker is still believed to be in control of a wallet containing over 1.27 billion AUSD. The exploit hackers have been asked to give back the stolen funds to Moonbeam or Polkadot addresses.
Sleuths have pointed out that the Acala exploit attacker who was behind the 1.28 billion was not alone in taking advantage of the situation. Other hackers also stole DOT worth thousands from the liquidity pool.
There are estimates that the exploit was anything up to $10 M. another source put the damage to be around 1.6 M USD with a chance of recovery. Developers at Acala said they would continue to trace the on-chain activity to resolve the error mint of aUSD and also attempt to restore aUSD peg.
There were proposals to roll back the chain to reverse token mints completely but others said that it would lead to harmful precedents. The network continues to be in maintenance mode. The Acala exploit wallets have been identified.
