According to a news post Bette Chen, co-founder of Acala Network has announced that the Acala community voted to use 2.97 billion Acala USD ($aUSD) stablecoins.
Acala is an Ethereum-compatible, scalable layer-1 smart contracts platform built on Polkadot blockchain. It is also the blockchain network that powers aUSD stablecoin.
The aUSD stabilitycoin
The aUSD is heavily collateralized by digital assets from the Kusama ecosystem and Polkadot ecosystem. There is a 195% deposit rate for every minted USD.
Last week, the price for aUSD dropped below $0.01 after it was removed from its US dollar peg. Later, it was determined that the sudden increase in the supply of aUSD stablecoins caused by an error in minting was the reason for the de-pegging.
3.022 Billion aUSD stablecoins were incorrectly minted following the misconfiguration of the iBTC/aUSD liquidity Pool that went live August 14.
However, the misconfiguration has been corrected and the wallet addresses which benefited from the erroneously issued aUSD have been identified via on-chain tracing. One hundred and fifty accounts received 12.38 millions aUSD.
More than 99 percent of the erroneously issued aUSD were then transferred into the Acala Parachain. However, some of them, estimated at $9.69 million in value, were swapped to DOT to be moved to centralized cryptocurrency exchanges.
The aUSD is currently trading at about $0.84 which is still below its dollar parity; meaning the erroneous minting is still affecting the system’s equilibrium.