Deja vu for stablecoins? This token tanks 99% post hacker attack

economictimes.indiatimes.com:

History repeated itself as the Polkadot-based decentralized finance (DeFi) platform Acala’s native stablecoin, Acala Dollar (aUSD), lost its parity, plummeting 99 per cent and its value was reduced to some fractions of a cent. However, this time, it was a hacking attack that led to this steep fall. aUSD was under pressure after hackers exploited a bug in a newly deployed liquidity pool to mint 1.28 billion tokens. The infamous depegging of Terra Foundations stablecoin is not an old legend for crypto investors, which wiped out about $30 billion from investors kitty in merely 100 hours.

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According to the media reports, Acala developers said the bug was caused by a misconfiguration of the iBTC/aUSD liquidity pool shortly after it went live on Sunday. A liquidity pool is a digital pile of cryptocurrency locked in a smart contract, which results in creating liquidity for faster transactions on decentralized exchanges (DEX) and DeFi protocols. After noticing the exploit, the Acala team disabled the transfer functionality of the 'erroneously minted aUSD' remaining on the Acala parachain. Parachains refer to custom, project-specific blockchains that are integrated within the Polkadot and Kusama networks and can be customized for any number of use cases. Market experts said that the DeFi ecosystem needs to prioritize security over yields to ensure mass adoption of defi products. Sharat Chandra, Vice President — Research and Strategy Vice