Acala Dollar Up 10276.4% to Trade at $0.93 After Platform Burnt Over 1.2B aUSD
- According to data by Acala, out of the 999999998.0185392 ACA electorate, the total turnout was 1145633.4088 ACA.
- Built on top of the Polkadot ecosystem, the Acala stablecoin is backed by several crypto assets including DOT, KSM, ACA, KAR, BTC, and ETH.
Acala USD (aUSD), the native decentralized stablecoin for Polkadot, has almost regained its peg after resolving to burn the erroneously minted coins. According to our market data, Acala USD is trading around $0.93, after a 10276 percent spike in the past 24 hours. The Acala network said the 1,292,860,248 total erroneously minted aUSD have been returned to the honzon protocol and burned.
Meanwhile, developers are working to identify aUSD tokens that may have been swapped or transferred by the exploiter.
According to data by Acala, out of the 999999998.0185392 ACA electorate, the total turnout was 1145633.4088 ACA. Notably, 95 percent of the turnout voted for the coins to be burned. However, 5 percent of the electorate, representing 44483.02918 ACA voted against the move.
Notably, there were two proposals in the Acala referendum. The first proposal was for the 1,288,561,129 aUSD erroneously minted and remained on the 16 accounts to be returned to honzon protocol and be effectively burnt.
The other was for the 4,299,119 erroneously minted aUSD remaining in the iBTC/aUSD reward pool to be returned to honzon protocol and also be effectively burnt.
Acala and the Decentralized Stablecoin Market
Built on top of the Polkadot ecosystem, the Acala stablecoin is backed by several crypto assets including DOT, KSM, ACA, KAR, BTC, and ETH. The aUSD can be transferred cross-chain to any parachain on Polkadot or Kusama. Thereby making it highly liquid across different chains.
The Acala aUSD is the latest decentralized stablecoin to fall victim to its success. It is not to be forgotten, the Terra Luna saga unveiled the drama in the decentralized stablecoin market.
Hereby raising questions on the legitimacy of the decentralized stablecoin market.
The stablecoin market has been identified as a key factor in the ultimate success of digital assets. Remember, the crypto market is so volatile and traders need assets to hedge during extreme trading days.
While stablecoins complement both the digital assets and the CBDCs, their security depends on the underlying blockchain technology. Moreover, stablecoins do not have their blockchain but rely on existing rails to run.
For instance, the success of Tether USDT can be traced to the security aspect of underlying chains like Ethereum, Tron, Binance, etc.
Takeaway Notes
The Acala native token ACA trades around $0.268566, having lost 18 percent in the past seven days. The asset has a market cap of $129,574,939, and its 24-hour trading volume is reported at $7,449,350.
The total crypto market volume over the last 24 hours is $67 billion, which makes a 13.80 percent decrease. The total volume in DeFi is currently $5.35B, representing 7.99 percent of the total crypto market 24-hour volume. The volume of all stablecoins is reportedly at 61.62 billion, which is 91.98 percent of the total crypto market 24-hour volume.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
