- The Acala Network has resumed operations after inadvertently printing over $3 billion in stablecoins with the help of its community.
- The error would be fixed, and parity with the U.S. dollar would be restored before operations could be resumed “safely and gradually.”
- After nearly destroying the network operations, the community voted to resume operations.
Hackers are a problem for some blockchain projects, but their own developers are a problem for Acala. Recently, a “human error” nearly brought the project to an end. Even so, the issue has been somewhat addressed due to the community and developers’ collaborative efforts.
Acala Network announced the resumption of its activities on September 26 after recovering $2.970 million in USD of the $3.022 million that its team unintentionally printed in August.
They took it to Twitter to announce that a community referendum for stage 1 of resume operations is up for a vote. Provided that the vote is passed, LPs will be able to withdraw liquidity from block #1939200.
A community referendum for stage 1 of resume operations is up for a vote. If passes, LPs can withdraw liquidity from block #1939200 roughly 2022-09-26 01:46 (+UTC)https://t.co/ypdNEMWk48 https://t.co/7hbbnRmo8W— Acala (@AcalaNetwork) September 25, 2022
The DeFi platform Acala Network released a report on August 15 detailing how they accidentally printed over 3 billion of its aUSD stablecoin, which led to its instant collapse. At that point, the price of a USD coin fell by more than 99%, to less than $0.01 per coin.
The network chose to halt oracles, swap operations, and inter-chain communications on Polkadot as a result of the failure, among other things. The team added that after the problem was fixed and parity with the US dollar was restored, operations would be restarted “safely and gradually.”
In order to recover unsecured tokens, the network has since entered maintenance mode and frozen user funds. Even while the value of the aUSD remains at $0.77, considerably below the appropriate $1 reference, the community later decided to identify and destroy tokens that had been incorrectly printed, which helped restore operations.
Despite the fact that Acala Network has resumed network operations, it now needs to fight to win back users’ faith. Furthermore, there are occasions when that is more difficult than writing the code for a smart contract.