A total of US$3.022 billion was previously minted as a result of the failure of the liquidity bridge.
According to a new post by Acala Network co-founder Bette Chen, the community has voted to burn the $2.97 billion Acala USD (aUSD) stablecoin.
Acala is a decentralized finance platform built on top of the Polkadot (DOT) ecosystem. A week earlier, the price of the dollar fell from a dollar peg to less than $0.01 after it was discovered that $3.022 billion was minted in error due to a misconfiguration of the iBTC/aUSD liquidity pool, which was launched on August 14.
The misconfiguration has since been corrected and wallet addresses that received the erroneously minted US dollar have been identified using on-chain tracking. Over 99% of all newly minted US dollars remain on the Acala Parachain network. However, about $9.69 million of funds were transferred from aUSD to DOT and sent to major exchanges.
It was also found that 35 accounts received a surplus of $12.38 million in misminted US dollars.
aUSD is over-backed by various digital assets in the Polkadot and Kusama ecosystems with a deposit rate of 195% per US dollar minted. However, the stablecoin’s current price of $0.84 suggests that misminted coins are still upsetting the balance of the system. Developers have announced bounties and public petitions to return faulty assets to the Acala network. Chen also warned:
“Many services on Acala have been interrupted. Therefore, the team is trying to find a balance between accuracy and speed. We still have a bit of work to do before services can fully resume to error upon completion, our community will have a clearer understanding of the wording of the USD recovery proposal.”