DeFi protocol of Polkadot network Acala, suffered a security breach and ceased operations.
Technology has advantages as well as disadvantages. An example of this is that the software behind the computer or its programs can be an easy target. Things are not much different in the crypto industry, and companies need to be secure at all times. Attackers are also turning their direction to a place where they can take advantage of the vulnerabilities. The new project targeted by hackers was Acala.
Acala Experienced Security Breach
DeFi protocol Acala suffered a security breach, which caused the AUSD stablecoin to be pegged. The project team is currently working to investigate the issue and mitigate the damage. The attack allegedly resulted from a bug in the iBTC/AUSD pool.
The vulnerability allowed the attacker to mine an additional 1.2 Acala Dollars (AUSD) billion tokens. It is stated that the attacker currently has 785,938 AUSD tokens in his wallet.
Due to the attack, the AUSD stablecoin lost its stable and fell to an all-time low of 0.5713. While the stablecoin has managed to reclaim around 44 percent of its value, debate continues as to whether it will turn into a Terra-like disaster.
