Acala, the decentralized hub of the Polkadot network, has suffered a security breach, which promoted it to pass an urgent vote to pause operations.
We have noticed a configuration issue of the Honzon protocol which affects aUSD. We are passing an urgent vote to pause operations on Acala, while we investigate and mitigate the issue. We will report back as we return to normal network operation.— Acala (@AcalaNetwork) August 14, 2022
Acala team is currently working on investigating and mitigating the issue behind the hack.
At the time of writing this article Acala stablecoin, AUSD lost its peg, plunging to an all-time low of $0.5713.
The AUSD cryptocurrency is backed by a slew of collateral reserve assets, billing itself as the multi-chain version of the Ethereum-based Dai (DAI) stablecoin. It exists alongside the ACA (Acala Token) government token, whose value has also plunged by more than 12% as the result of the hack.