Acala, a decentralized financial network that powers the cryptocurrency-backed aUSD stablecoin ecosystem, is “ready to resume its operations,” the platform announced on Friday.
In August, the Acala community voted to suspend network operations after an aUSD breach saw the stablecoin depeg.
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Acala ‘ready’ after the mint of a USD mistake
A mistake in the minting of the token, which serves as a native stablecoin on Polkadot, has seen more than $ 3 billion wrongly minted, with the incident leading to actions by the liquidity provider aiding the eventual depegging of the decentralized stablecoin .
The community quickly adopted various governance votes to suspend more operations, which included its DEX, incentive pallet, Oracle pallet, redemption, and non-ACA token transfers.
But today, the Acala team said the network was ready to resume operations. Acala co-founder and COO Bette Chen wrote in a medium post:
“Since the Acala aUSD Mint Mint Incident on 08/14/2022 … a series of community governance votes have been passed, so that all liquidity pools are now recapitalized and rebalanced and all aUSD in circulation are now fully guaranteed. The Acala network is in a state where it is ready to resume operations “.
Conditions and prices in the cryptocurrency market have changed significantly since the incident, and the Acala team realizes the impact this could have on liquidity providers. As such, the recommendation consists of resuming network operations in three stages:
Phase 1 will see LPs allowed to withdraw from the pools while Phase 2 will allow for all trades such as trading, incentive pallets and instant LDOT redemptions. The oracles will then be enabled in phase 3.
Acala Foundation says it is still working with law enforcement and other partners as it tries to recover all aUSD and exchanged tokens resulting from the error ticks.
There also remains a 5% bounty for anyone returning funds that they may have received erroneously due to the exploit.
At the moment, and as it seeks to resume operations, the foundation notes that some resources remain frozen on the chain following the votes of the community governance. There are also frozen assets in more CEXs.
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